NewzIntel Latest Reports – Page 4816

MIL-OSI Security: Lame Deer woman admits assault charges in rollover crash that injured two passengers on Northern Cheyenne Indian Reservation

Source: Office of United States Attorneys

BILLINGS — A Lame Deer woman today admitted to assault charges after two passengers were seriously injured when the vehicle she was driving rolled on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.

The defendant, Kendra Carol Cook, 34, pleaded guilty to two counts of assault resulting in serious bodily injury. Cook faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on each count.

U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Cook was detained pending further proceedings.

In court documents, the government alleged that on May 18, 2023, the FBI received a report that a car driven by Cook had rolled north of Lame Deer, injuring Cook and her two passengers. Cook was under the influence of alcohol at the time. A witness reported finding two women who were injured. The women told her that Cook had left the scene. One of the passengers, Jane Doe 2, was in the back seat, while another passenger, Jane Doe 1, was in the front seat. Cook told Doe 2 that she was drinking whiskey before picking her up. They bought alcohol and were drinking it while driving to Lame Deer. Cook was swerving all over the road, and, in Doe 2’s opinion, intentionally trying to wreck. Cook accelerated and turned the wheel, causing the car to go into a ditch and start flipping. Doe 1 estimated Cook was driving approximately 80 miles and hour and slowed to approximately 60 mph when they started swerving. Doe 1 denied there was any fighting or interfering with Cook. Cook acknowledged being under the influence of alcohol at the time of the wreck and claimed she and the passengers were fighting over the alcohol. Both victims suffered fractures and other serious injuries. The rollover occurred in a 35-mph speed zone.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Marshall Islands, military leaders strengthen partnership, defense

Source: United States INDO PACIFIC COMMAND

MAJURO, Marshall, Islands –

U.S. Indo-Pacific Command’s senior military official to the Republic of the Marshall Islands (RMI) met with local leaders in Majuro to discuss defense and security, Jan 23.

Commander, Joint Task Force-Micronesia (JTF-M) U.S. Navy Rear Adm. Greg Huffman spoke with representatives from the U.S. Embassy and RMI National Security Director Chris deBrum during the visit.

The U.S. has a longstanding relationship with the RMI and, continued under the recently renewed Compact of Free Association, is responsible for its defense. Established in June 2024, JTF-M’s mission is to synchronize military operations and activities across all domains from seabed to space to promote regional security and stability.

“I am thankful for the opportunity to build upon the partnership we share with the people of the Marshall Islands,” Huffman said. “We have the common goal of maintaining peace and security in the region and will continue to work together to grow our collective maritime domain awareness and strengthen our defense here and across all of Micronesia.”

Huffman shared his commitment to open lines of communication with RMI’s leadership and community about potential military activities and future investments. He also underscored the value of a common operating picture to counter illegal activity in the region.

“We look forward to partnering more closely with INDOPACOM to address security concerns,” deBrum said. “We have overlapping issues so to be able to share resources is critical to our mutual success.”

Huffman met with members of the Marshall Islands Marine Resources Authority (MIMRA) at their headquarters in Majuro, where the MIMRA team provided a capabilities brief. He also met with Commander, U.S. Army Garrison-Kwajalein Atoll Col. Andrew Morgan and Royal Australian Navy Lt. Cmdr. Lachlan Sommerville, maritime security advisor, for updates in their respective areas of responsibility.

Dedicated to promoting regional stability, JTF-M performs Homeland Defense, Defense Support to Civil Authorities, and Foreign Humanitarian Assistance through a whole of government approach within its assigned joint operations area.

For more information about JTF-M, visit https://www.pacom.mil/JTF-Micronesia/

MIL Security OSI –

January 29, 2025

MIL-OSI: Ponce Financial Group, Inc. Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2024.

Fourth Quarter 2024 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024, as compared to net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024 and net income available to common stockholders of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023. Total net income for the three months ended December 31, 2024 was $2.9 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2024.
Included in the $2.7 million of net income available to common stockholders for the fourth quarter of 2024 results is $42.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $22.2 million in interest expense, $17.3 million in non-interest expense, $1.5 million in provision for income taxes. $1.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $20.7 million for the fourth quarter of 2024 increased $1.7 million, or 8.97%, from the prior quarter and increased $3.5 million, or 20.54%, from the same quarter last year.
Net interest margin was 2.80% for the fourth quarter of 2024, versus 2.65% for the prior quarter and 2.66% for the same quarter last year.

Full Year 2024 Highlights (Compared to 2023):

Net income available to common stockholders was $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024, compared to net income available to common stockholders of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023. Total net income for the year ended December 31, 2024, prior to the payment of $0.6 million in dividends on preferred shares, was $11.0 million.
Net interest income for the year ended December 31, 2024 was $76.5 million, an increase of $11.2 million, or 17.18%, compared to $65.3 million for the year ended December 31, 2023.
Non-interest income for the year ended December 31, 2024 was $7.2 million, a decrease of $3.0 million, or 29.44%, from $10.2 million for the year ended December 31, 2023. The decrease was primarily driven by $4.2 million in grants that were received in the prior year.
Non-interest expense for the year ended December 31, 2024 was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023.
Cash and equivalents were $139.8 million as of December 31, 2024, an increase of $0.6 million, or 0.47%, from $139.2 million as of December 31, 2023.
Securities totaled $472.9 million as of December 31, 2024, a decrease of $108.7 million, or 18.70%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, the maturity of one available-for-sale security in the amount of $4.0 million and one held-to-maturity security in the amount of $25.0 million and the call of one held-to-maturity security in the amount of $25.0 million.
Net loans receivable were $2.29 billion as of December 31, 2024, an increase of $390.7 million, or 20.61%, from $1.90 billion as of December 31, 2023.
Deposits were $1.88 billion as of December 31, 2024, an increase of $377.2 million, or 25.02%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated, “We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution (“CDFI”), and we continue to invest in our people and in technology to improve our efficiency.”

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added, “We are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate.”

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Performance Ratios (Annualized):	2024			2024			2024			2024			2023
Return on average assets (1)		0.38	%		0.33	%		0.45	%		0.33	%		0.08	%
Return on average equity (1)		2.30	%		1.93	%		2.59	%		1.97	%		0.42	%
Net interest rate spread (1) (2)		1.98	%		1.77	%		1.72	%		1.82	%		1.74	%
Net interest margin (1) (3)		2.80	%		2.65	%		2.62	%		2.71	%		2.66	%
Non-interest expense to average assets (1)		2.25	%		2.19	%		2.28	%		2.35	%		2.66	%
Efficiency ratio (4)		75.63	%		80.87	%		80.09	%		82.56	%		96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%		128.35	%		129.73	%		129.69	%		133.50	%
Average equity to average assets		16.59	%		16.97	%		17.41	%		17.00	%		18.25	%

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Capital Ratios (Annualized):	2024			2024			2024			2024			2023
Total capital to risk-weighted assets (Bank only)		21.47	%		21.61	%		22.47	%		22.79	%		23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%		16.19	%		16.70	%		16.26	%		17.49	%

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Asset Quality Ratios (Annualized):	2024			2024			2024			2024			2023
Allowance for loan losses as a percentage of total loans		0.97	%		1.09	%		1.18	%		1.23	%		1.36	%
Allowance for loan losses as a percentage of nonperforming loans		82.29	%		139.52	%		130.28	%		140.90	%		152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Non-performing loans as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Summary of Results of Operations

Net income for the three months ended December 31, 2024 was $2.9 million compared to net income of $2.4 million for the three months ended September 30, 2024 and net income of $0.5 million for the three months ended December 31, 2023.

The $0.5 million increase of net income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was attributed mainly to increases of $1.7 million in net interest income and $1.0 million in non-interest income, partially offset by increases of $1.0 million in non-interest expense, $0.9 million in provision for income taxes and $0.3 million in provision for credit losses.

The $2.4 million increase of net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to increases of $3.5 million in net interest income and $0.9 million in non-interest income and a decrease of $0.5 million in non-interest expense, partially offset by increases of $1.5 million in provision for credit losses and $1.1 million in provision for income taxes.

Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and
a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.

Net Interest Income and Net Margin

Net interest income for the three months ended December 31, 2024, increased $1.7 million, or 8.97%, to $20.7 million compared to $19.0 million for the three months ended September 30, 2024 and increased $3.5 million, or 20.54%, compared to $17.2 million for the three months ended December 31, 2023.

Net interest income for the year ended December 31, 2024, increased $11.2 million, or 17.18%, to $76.5 million, compared to $65.3 million for the year ended December 31, 2023. The $11.2 million increase in net interest income was attributable to an increase of $36.8 million in total interest and dividend income, offset by an increase of $25.6 million in total interest expense.

For the year ended December 31, 2024, provision for credit losses amounted to $1.3 million, consisting of a provision for credit losses on loans in the amount of $1.5 million and a benefit on credit losses on held-to-maturity securities in the amount of $0.2 million.

Net interest margin was 2.80% for the three months ended December 31, 2024 compared to 2.65% for the prior quarter, an increase of 15bps and 2.66% for the same period last year, an increase of 14bps.

Net interest margin was 2.70% for the year ended December 31, 2024 compared to 2.66% for the year ended December 31, 2023, an increase of 4bps.

Non-interest Income

Non-interest income for the three months ended December 31, 2024, was $2.1 million, an increase of $0.9 million, or 82.19%, compared to $1.2 million for the three months ended September 30, 2024 and an increase of $0.8 million, or 63.19%, compared to $1.3 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was largely attributable to increases of $0.5 million in other non-interest income, $0.2 million in late and prepayment charges and $0.1 million in income on sale of SBA loans.

The $0.8 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely attributable to increases of $1.1 million in other non-interest income and $0.1 million in income on sale of SBA loans, partially offset by a decrease of $0.4 million in grant income received in the fourth quarter of 2023.

Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023. The $3.0 million decrease in non-interest income was largely attributable to $4.2 million related to grants received in 2023 and a decrease of $1.2 million in late and prepayment charges, partially offset by increases of $1.8 million in other non-interest income, $0.5 million in income on sale of mortgage loans and $0.1 million in income on sale of SBA loans.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024 and a decrease of $0.6 million, or 3.54%, compared to $17.9 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest expense from the three months ended September 30, 2024 was mainly attributable to increases of $0.4 million in professional fees, $0.2 million in other operating expense, $0.1 million in marketing and promotional expenses, $0.1 million in office supplies, telephone and postage and $0.1 million in occupancy and equipment.

The $0.6 million decrease in non-interest expense from the three months ended December 31, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.6 million in compensation and benefits and $0.3 million in professional fees, partially offset by increases of $0.3 million in other operating expense, $0.2 million in occupancy and equipment, $0.1 million in marketing and promotional expenses and $0.1 million in direct loan expenses.

Non-interest expense for the year ended December 31, 2024, was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023. The $2.0 million decrease in non-interest expense from the year ended December 31, 2023 was mainly attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses, $0.5 million in office supplies, telephone and postage, partially offset by a decrease in microloans recoveries of $1.3 million and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.

Balance Sheet Summary

Total assets increased $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in Federal Home Loan Bank of New York stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.

Total liabilities increased $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits, partially offset by decreases of $88.3 million in borrowings, $8.3 million in accrued interest payable, $3.1 million in other liabilities, $2.0 million in operating lease liabilities and $0.4 million in advance payments by borrowers for taxes.

Total stockholders’ equity increased $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023. The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)


	As of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
ASSETS
Cash and due from banks:
Cash	$	35,478		$	32,061		$	23,128		$	29,972		$	28,930
Interest-bearing deposits		104,361			123,751			80,038			104,752			110,260
Total cash and cash equivalents		139,839			155,812			103,166			134,724			139,190
Available-for-sale securities, at fair value		104,970			111,005			113,125			116,044			119,902
Held-to-maturity securities, at amortized cost		367,938			403,736			442,113			452,955			461,748
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		10,736			9,566			37,764			7,860			9,980
Loans receivable, net		2,286,599			2,180,331			2,022,173			1,981,428			1,895,886
Accrued interest receivable		17,771			16,890			17,441			18,063			18,010
Premises and equipment, net		16,794			16,843			16,976			17,396			16,053
Right of use assets		29,093			29,785			30,349			31,021			31,272
Federal Home Loan Bank of New York stock (FHLBNY), at cost		29,182			28,515			23,972			23,892			19,377
Deferred tax assets		12,074			11,845			13,172			13,919			14,332
Other assets		24,693			51,392			21,507			21,151			24,723
Total assets	$	3,039,938		$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	1,884,864		$	1,870,323		$	1,606,097		$	1,585,784		$	1,507,620
Operating lease liabilities		30,696			31,343			31,861			32,486			32,684
Accrued interest payable		3,712			2,918			6,820			4,218			11,965
Advance payments by borrowers for taxes and insurance		10,349			13,733			10,838			13,245			10,778
Borrowings		596,100			580,421			680,421			680,421			684,421
Other liabilities		8,717			12,642			8,313			8,866			11,859
Total liabilities		2,534,438			2,511,380			2,344,350			2,325,020			2,259,327
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized		225,000			225,000			225,000			225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized		249			249			249			249			249
Treasury stock, at cost		(7,707	)		(9,445	)		(9,519	)		(9,702	)		(9,747	)
Additional paid-in-capital		207,319			208,478			207,934			207,584			207,106
Retained earnings		107,754			105,103			102,951			99,834			97,420
Accumulated other comprehensive loss		(15,297	)		(12,686	)		(16,557	)		(16,590	)		(15,649	)
Unearned compensation ─ ESOP		(11,818	)		(12,110	)		(12,401	)		(12,693	)		(12,984	)
Total stockholders’ equity		505,500			504,589			497,657			493,682			491,395
Total liabilities and stockholders’ equity	$	3,039,938		$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Interest and dividend income:
Interest on loans receivable	$	35,622		$	32,945		$	31,281		$	30,664		$	27,814
Interest on deposits due from banks		1,783			2,430			1,542			2,911			990
Interest and dividend on securities and FHLBNY stock		5,481			5,918			5,969			6,091			6,146
Total interest and dividend income		42,886			41,293			38,792			39,666			34,950
Interest expense:
Interest on certificates of deposit		8,104			6,926			6,358			6,380			5,103
Interest on other deposits		8,476			8,519			7,389			6,540			5,706
Interest on borrowings		5,576			6,825			7,141			7,923			6,944
Total interest expense		22,156			22,270			20,888			20,843			17,753
Net interest income		20,730			19,023			17,904			18,823			17,197
Provision (benefit) for credit losses		1,099			789			(374	)		(180	)		(375	)
Net interest income after provision (benefit) for credit losses		19,631			18,234			18,278			19,003			17,572
Non-interest income:
Service charges and fees		500			508			492			473			498
Brokerage commissions		44			—			9			8			13
Late and prepayment charges		318			77			426			359			365
Income on sale of mortgage loans		254			218			274			302			244
Income on sale of SBA loans		148			—			—			—			—
Grant income		—			—			—			—			438
Other		833			348			1,057			565			(273	)
Total non-interest income		2,097			1,151			2,258			1,707			1,285
Non-interest expense:
Compensation and benefits		7,668			7,674			7,724			7,844			8,262
Occupancy and equipment		3,863			3,786			3,564			3,667			3,686
Data processing expenses		1,143			1,099			1,013			1,127			1,101
Direct loan expenses		617			573			633			732			497
(Benefit) provision for contingencies		(202	)		(252	)		(493	)		164			418
Insurance and surety bond premiums		293			292			263			253			250
Office supplies, telephone and postage		294			222			233			249			294
Professional fees		1,703			1,351			1,369			1,723			2,040
Microloans recoveries		(29	)		(54	)		(65	)		(53	)		(152	)
Marketing and promotional expenses		289			180			145			100			146
Federal deposit insurance and regulatory assessment ⁽¹⁾		418			392			428			389			395
Other operating expenses ⁽¹⁾		1,206			1,051			1,333			755			960
Total non-interest expense		17,263			16,314			16,147			16,950			17,897
Income before income taxes		4,465			3,071			4,389			3,760			960
Provision for income taxes		1,532			638			1,197			1,346			442
Net income	$	2,933		$	2,433		$	3,192		$	2,414		$	518
Dividends on preferred shares		282			281			75			—			—
Net income available to common stockholders	$	2,651		$	2,152		$	3,117		$	2,414		$	518
Earnings per common share:
Basic	$	0.12		$	0.10		$	0.14		$	0.11		$	0.02
Diluted	$	0.12		$	0.10		$	0.14		$	0.11		$	0.02
Weighted average common shares outstanding:
Basic		22,528,160			22,446,009			22,409,803			22,353,492			22,224,945
Diluted		22,807,644			22,612,028			22,419,309			22,366,728			22,406,102

_{⁽¹⁾ For the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.}

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

	For the Years Ended December 31,
	2024			2023			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	130,512		$	95,805		$	34,707			36.23	%
Interest on deposits due from banks		8,666			4,973			3,693			74.26	%
Interest and dividend on securities and FHLBNY stock		23,459			25,089			(1,630	)		(6.50	%)
Total interest and dividend income		162,637			125,867			36,770			29.21	%
Interest expense:
Interest on certificates of deposit		27,768			16,571			11,197			67.57	%
Interest on other deposits		30,924			18,570			12,354			66.53	%
Interest on borrowings		27,465			25,460			2,005			7.88	%
Total interest expense		86,157			60,601			25,556			42.17	%
Net interest income		76,480			65,266			11,214			17.18	%
Provision for credit losses		1,334			973			361			37.10	%
Net interest income after provision for credit losses		75,146			64,293			10,853			16.88	%
Non-interest income:
Service charges and fees		1,973			1,986			(13	)		(0.65	%)
Brokerage commissions		61			80			(19	)		(23.75	%)
Late and prepayment charges		1,180			2,365			(1,185	)		(50.11	%)
Income on sale of mortgage loans		1,048			598			450			75.25	%
Income on sale of SBA loans		148			—			148			100.00	%
Grant income		—			4,156			(4,156	)		(100.00	%)
Other		2,803			1,038			1,765			170.04	%
Total non-interest income		7,213			10,223			(3,010	)		(29.44	%)
Non-interest expense:
Compensation and benefits		30,910			30,699			211			0.69	%
Occupancy and equipment		14,880			14,568			312			2.14	%
Data processing expenses		4,382			5,083			(701	)		(13.79	%)
Direct loan expenses		2,555			1,623			932			57.42	%
(Benefit) provision for contingencies		(783	)		2,311			(3,094	)		(133.88	%)
Insurance and surety bond premiums		1,101			1,018			83			8.15	%
Office supplies, telephone and postage		998			1,483			(485	)		(32.70	%)
Professional fees		6,146			7,092			(946	)		(13.34	%)
Microloans recoveries		(201	)		(1,481	)		1,280			(86.43	%)
Marketing and promotional expenses		714			825			(111	)		(13.45	%)
Federal deposit insurance and regulatory assessments ⁽¹⁾		1,627			1,472			155			10.53	%
Other operating expenses ⁽¹⁾		4,345			3,970			375			9.45	%
Total non-interest expense		66,674			68,663			(1,989	)		(2.90	%)
Income before income taxes		15,685			5,853			9,832			167.98	%
Provision for income taxes		4,713			2,501			2,212			88.44	%
Net income	$	10,972		$	3,352		$	7,620			227.33	%
Dividends on preferred shares		638			—			638			100.00	%
Net income available to common stockholders	$	10,334		$	3,352		$	6,982			208.29	%
Earnings per common share:
Basic	$	0.46		$	0.15		$	0.31			206.67	%
Diluted	$	0.46		$	0.15		$	0.31			206.67	%
Weighted average common shares outstanding:
Basic		22,434,654			22,745,317			(310,663	)		(1.37	%)
Diluted		22,551,715			22,822,313			(270,598	)		(1.19	%)

_{⁽¹⁾ For the year ended December 31, 2023, $1.2 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.4 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.}

Ponce Financial Group, Inc. and Subsidiaries
Key Metrics

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Performance Ratios:
Return on average assets (1)		0.38	%		0.33	%		0.45	%		0.33	%		0.08	%
Return on average equity (1)		2.30	%		1.93	%		2.59	%		1.97	%		0.42	%
Net interest rate spread (1) (2)		1.98	%		1.77	%		1.72	%		1.82	%		1.74	%
Net interest margin (1) (3)		2.80	%		2.65	%		2.62	%		2.71	%		2.66	%
Non-interest expense to average assets (1)		2.25	%		2.19	%		2.28	%		2.35	%		2.66	%
Efficiency ratio (4)		75.63	%		80.87	%		80.09	%		82.56	%		96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%		128.35	%		129.73	%		129.69	%		133.50	%
Average equity to average assets		16.59	%		16.97	%		17.41	%		17.00	%		18.25	%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)		21.47	%		21.61	%		22.47	%		22.79	%		23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%		16.19	%		16.70	%		16.26	%		17.49	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.97	%		1.09	%		1.18	%		1.23	%		1.36	%
Allowance for credit losses on loans as a percentage of nonperforming loans		82.29	%		139.52	%		130.28	%		140.90	%		152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Non-performing loans as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%
Other:
Number of offices		19			19			18			18			18
Number of full-time equivalent employees		218			228			227			233			237

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio

	December 31, 2024										December 31, 2023
				Gross		Gross								Gross		Gross
	Amortized			Unrealized		Unrealized					Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value		Cost			Gains		Losses			Fair Value
	(in thousands)										(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,994		$	—	$	(121	)	$	2,873	$	2,990		$	—	$	(206	)	$	2,784
Corporate Bonds		21,762			10		(1,368	)		20,404		25,790			—		(2,122	)		23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		34,526			—		(5,991	)		28,535		39,375			—		(6,227	)		33,148
FHLMC Certificates		9,028			—		(1,366	)		7,662		10,163			—		(1,482	)		8,681
FNMA Certificates		56,010			—		(10,602	)		45,408		61,359			—		(9,842	)		51,517
GNMA Certificates		88			—		—			88		104			—		—			104
Total available-for-sale securities	$	124,408		$	10	$	(19,448	)	$	104,970	$	139,781		$	—	$	(19,879	)	$	119,902

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(40	)	$	24,960	$	25,000		$	—	$	(181	)	$	24,819
Corporate Bonds		32,500			12		(535	)		31,977		82,500			—		(2,691	)		79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		186,634			—		(7,052	)		179,582		212,093			104		(5,170	)		207,027
FHLMC Certificates		3,229			—		(223	)		3,006		3,897			—		(244	)		3,653
FNMA Certificates		105,417			—		(5,114	)		100,303		118,944			—		(4,088	)		114,856
SBA Certificates		15,374			92		—			15,466		19,712			166		—			19,878
Allowance for Credit Losses		(216	)		—		—			—		(398	)		—		—			—
Total held-to-maturity securities	$	367,938		$	104	$	(12,964	)	$	355,294	$	461,748		$	270	$	(12,374	)	$	450,042

_{⁽¹⁾ Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.}

The following table presents the activity in the allowance for credit losses for held-to-maturity securities.

	For the Years Ended December 31,
	2024			2023
Allowance for credit losses on securities at beginning of the period	$	398		$	—
CECL adoption		—			662
Benefit for credit losses		(182	)		(264	)
Allowance for credit losses on securities at end of the period	$	216		$	398

Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio

	As of
	December 31,						September 30,						June 30,						March 31,						December 31,
	2024						2024						2024						2024						2023
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	330,053			14.30	%	$	332,380			15.09	%	$	337,292			16.49	%	$	339,331			16.92	%	$	343,689			17.89	%
Owner-Occupied		142,363			6.17	%		145,065			6.59	%		147,485			7.21	%		150,842			7.52	%		152,311			7.93	%
Multifamily residential		670,159			29.04	%		678,029			30.78	%		545,323			26.66	%		545,825			27.22	%		550,559			28.65	%
Nonresidential properties		389,898			16.89	%		383,277			17.40	%		337,583			16.51	%		327,350			16.32	%		342,343			17.81	%
Construction and land		733,660			31.79	%		631,461			28.67	%		641,879			31.39	%		608,665			30.35	%		503,925			26.22	%
Total mortgage loans		2,266,133			98.19	%		2,170,212			98.53	%		2,009,562			98.26	%		1,972,013			98.33	%		1,892,827			98.50	%
Non-mortgage loans:
Business loans		40,849			1.77	%		28,499			1.29	%		30,222			1.48	%		26,664			1.33	%		19,779			1.03	%
Consumer loans (1)		1,038			0.04	%		4,021			0.18	%		5,305			0.26	%		6,741			0.34	%		8,966			0.47	%
Total non-mortgage loans		41,887			1.81	%		32,520			1.47	%		35,527			1.74	%		33,405			1.67	%		28,745			1.50	%
Total loans, gross		2,308,020			100.00	%		2,202,732			100.00	%		2,045,089			100.00	%		2,005,418			100.00	%		1,921,572			100.00	%
Net deferred loan origination costs		1,081						1,565						1,145						674						468
Allowance for credit losses on loans		(22,502	)					(23,966	)					(24,061	)					(24,664	)					(26,154	)
Loans, net	$	2,286,599					$	2,180,331					$	2,022,173					$	1,981,428					$	1,895,886

_{⁽¹⁾ As of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million and $8.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

Total Microloans Exposure as of December 31, 2024
(in thousands)
Microloans Receivable from Grain
Microloans originated – put back (inception-to-December 31, 2024)	$	23,903
Write-downs, net of recoveries (inception-to-date as of December 31, 2024)		(15,258	)
Cash receipts (inception-to-December 31, 2024)		(6,819	)
Grant/reserve		(1,826	)
Net receivable as of December 31, 2024	$	—
Microloans Receivables from Borrowers
Microloans receivable as of December 31, 2024	$	—
Allowance for credit losses on loans as of December 31, 2024		—
Microloans, net of allowance for credit losses on loans as of December 31, 2024	$	—
Investments
Investment in Grain	$	1,000
Investment write-off in Q3 2022		(1,000	)
Net investment as of December 31, 2024		—
Total exposure related to microloans as of December 31, 2024 ⁽¹⁾	$	—

_{⁽¹⁾ As of December 31, 2024, the remaining microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans

	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	23,966		$	24,061		$	24,664		$	26,154		$	27,414
Provision (benefit) for credit losses on loans		1,090			801			(120	)		(255	)		(126	)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—			—			—			—			—
Owner occupied		—			—			—			—			—
Multifamily residences		—			—			—			—			—
Nonresidential properties		—			(7	)		—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		(232	)		(450	)		—			(52	)		(63	)
Consumer		(2,465	)		(634	)		(747	)		(1,302	)		(1,135	)
Total charge-offs		(2,697	)		(1,091	)		(747	)		(1,354	)		(1,198	)
Recoveries:
Non-mortgage loans:
Business		—			1			7			1			—
Consumer		143			194			257			118			64
Total recoveries		143			195			264			119			64
Net (charge-offs) recoveries		(2,554	)		(896	)		(483	)		(1,235	)		(1,134	)
Allowance for credit losses on loans at end of the period	$	22,502		$	23,966		$	24,061		$	24,664		$	26,154

Ponce Financial Group, Inc. and Subsidiaries
Deposits

	As of
	December 31,					September 30,					June 30,					March 31,					December 31,
	2024					2024					2024					2024					2023
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand ⁽¹⁾	$	169,178		8.98	%	$	182,737		9.78	%	$	178,125		11.09	%	$	191,541		12.07	%	$	185,151		12.28	%
Interest-bearing deposits:
NOW/IOLA accounts ⁽¹⁾		62,616		3.32	%		71,445		3.82	%		81,178		5.05	%		73,202		4.62	%		77,909		5.17	%
Money market accounts		636,219		33.75	%		660,168		35.30	%		502,255		31.27	%		482,344		30.42	%		432,735		28.70	%
Reciprocal deposits		130,677		6.93	%		94,145		5.03	%		109,945		6.85	%		97,718		6.16	%		96,860		6.42	%
Savings accounts		105,870		5.62	%		108,941		5.82	%		109,694		6.83	%		112,713		7.11	%		114,139		7.57	%
Total NOW, money market, reciprocal and savings accounts		935,382		49.62	%		934,699		49.97	%		803,072		50.00	%		765,977		48.31	%		721,643		47.86	%
Certificates of deposit of $250K or more ⁽³⁾		204,293		10.84	%		210,262		11.25	%		189,683		11.82	%		183,478		11.57	%		167,530		11.12	%
Brokered certificates of deposit ⁽²⁾		94,531		5.02	%		94,531		5.05	%		94,614		5.89	%		94,689		5.97	%		98,729		6.55	%
Listing service deposits ⁽²⁾		7,376		0.39	%		7,376		0.39	%		9,361		0.58	%		12,688		0.80	%		14,433		0.96	%
All other certificates of deposit less than $250K ⁽³⁾		474,104		25.15	%		440,718		23.56	%		331,242		20.62	%		337,411		21.28	%		320,134		21.23	%
Total certificates of deposit		780,304		41.40	%		752,887		40.25	%		624,900		38.91	%		628,266		39.62	%		600,826		39.86	%
Total interest-bearing deposits		1,715,686		91.02	%		1,687,586		90.22	%		1,427,972		88.91	%		1,394,243		87.93	%		1,322,469		87.72	%
Total deposits	$	1,884,864		100.00	%	$	1,870,323		100.00	%	$	1,606,097		100.00	%	$	1,585,784		100.00	%	$	1,507,620		100.00	%

	(1)	As of December 31, 2023, $58.2 million was reclassified from demand to NOW/IOLA accounts.
	(2)	As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. As of December 31, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
	(3)	As of September 30, 2024, June 30,2024, March 31, 2024 and December 31, 2023, $36.2 million, $33.5 million, $37.2 million and $35.4 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.

Ponce Financial Group, Inc. and Subsidiaries
Borrowings

	December 31,							December 31,
	2024							2023
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
Overnight line of credit advance	$	25,000	$	25,000		4.69	%	$	—	$	—		—	%

Term advances ending:
2024		—		—		—			363,321		363,321		4.55
2025		100,000		100,000		4.48			50,000		50,000		4.41
2026		200,000		200,000		4.25			—		—		—
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		9,100		9,100		3.84			9,100		9,100		3.84
2029		50,000		50,000		3.35			50,000		50,000		3.35
	$	596,100	$	596,100		3.94	%	$	684,421	$	684,421		4.10	%

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

	As of Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436		$	436		$	436		$	399		$	793
Owner occupied		1,423			1,423			1,423			1,426			1,682
Multifamily residential		10,271			4,685			5,754			4,098			2,979
Nonresidential properties		—			824			828			441			—
Construction and land		14,158			8,907			8,907			10,277			10,759
Non-mortgage loans:
Business		343			180			396			146			165
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	26,631		$	16,455		$	17,744		$	16,787		$	16,378

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	279		$	278		$	277		$	270		$	270
Owner occupied		435			444			448			447			447
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		714			722			725			717			717
Total non-accrual loans ⁽²⁾	$	27,345		$	17,177		$	18,469		$	17,504		$	17,095

Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,807		$	1,821		$	1,830		$	1,850		$	2,112
Owner occupied		2,062			2,116			2,171			2,288			2,313
Multifamily residential		—			—			—			—			—
Nonresidential properties		652			672			707			748			757
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		215			222			—			—			—
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	4,736		$	4,831		$	4,708		$	4,886		$	5,182
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	32,081		$	22,008		$	23,177		$	22,390		$	22,277
Total non-performing loans to total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Total non-performing assets to total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets ⁽¹⁾		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
	(2)	Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Three Months Ended December 31,
	2024						2023
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾		Balance		Interest		Yield/Rate ⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽²⁾	$	2,261,426	$	35,622	6.27	%	$	1,884,301	$	27,814	5.86	%
Securities ⁽³⁾		507,510		4,860	3.81	%		582,563		5,715	3.89	%
Other ⁽⁴⁾		179,701		2,404	5.32	%		96,070		1,421	5.87	%
Total interest-earning assets		2,948,637		42,886	5.79	%		2,562,934		34,950	5.41	%
Non-interest-earning assets		108,558						107,305
Total assets	$	3,057,195					$	2,670,239
Interest-bearing liabilities:
NOW/IOLA ^{(5) (6)}	$	68,776	$	119	0.69	%	$	75,926	$	181	0.95	%
Money market ⁽⁶⁾		761,130		8,329	4.35	%		474,306		5,495	4.60	%
Savings		109,217		27	0.10	%		116,600		28	0.10	%
Certificates of deposit		783,335		8,104	4.12	%		559,713		5,103	3.62	%
Total deposits		1,722,458		16,579	3.83	%		1,226,545		10,807	3.50	%
Advance payments by borrowers		15,147		1	0.03	%		15,033		2	0.05	%
Borrowings		573,316		5,576	3.87	%		678,235		6,944	4.06	%
Total interest-bearing liabilities		2,310,921		22,156	3.81	%		1,919,813		17,753	3.67	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁵⁾		191,355		—				211,434		—
Other non-interest-bearing liabilities		47,875		—				51,764		—
Total non-interest-bearing liabilities		239,230		—				263,198		—
Total liabilities		2,550,151		22,156				2,183,011		17,753
Total equity		507,044						487,228
Total liabilities and total equity	$	3,057,195			3.81	%	$	2,670,239			3.67	%
Net interest income			$	20,730					$	17,197
Net interest rate spread ⁽⁷⁾					1.98	%					1.74	%
Net interest-earning assets ⁽⁸⁾	$	637,716					$	643,121
Net interest margin ⁽⁹⁾					2.80	%					2.66	%
Average interest-earning assets to interest-bearing liabilities					127.60	%					133.50	%

	(1)	Annualized where appropriate.
	(2)	Loans include loans and mortgage loans held for sale, at fair value.
	(3)	Securities include available-for-sale securities and held-to-maturity securities.
	(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(5)	Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(6)	Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
	(7)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Years Ended December 31,
	2024							2023
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate			Balance		Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽¹⁾	$	2,094,820	$	130,512		6.23	%	$	1,730,275	$	95,805		5.54	%
Securities ⁽²⁾		548,641		21,289		3.88	%		606,815		23,342		3.85	%
Other ⁽³⁾		192,403		10,836		5.63	%		119,923		6,720		5.60	%
Total interest-earning assets		2,835,864		162,637		5.74	%		2,457,013		125,867		5.12	%
Non-interest-earning assets		107,017							115,760
Total assets	$	2,942,881						$	2,572,773
Interest-bearing liabilities:
NOW/IOLA ^{(4) (5)}	$	74,796	$	662		0.89	%	$	70,993	$	1,314		1.85	%
Money market ⁽⁵⁾		654,521		30,148		4.61	%		424,160		17,132		4.04	%
Savings		111,028		107		0.10	%		121,550		116		0.10	%
Certificates of deposit		676,306		27,768		4.11	%		528,999		16,571		3.13	%
Total deposits		1,516,651		58,685		3.87	%		1,145,702		35,133		3.07	%
Advance payments by borrowers		14,034		7		0.05	%		14,869		8		0.05	%
Borrowings		670,982		27,465		4.09	%		633,116		25,460		4.02	%
Total interest-bearing liabilities		2,201,667		86,157		3.91	%		1,793,687		60,601		3.38	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁴⁾		191,155		—					241,510		—
Other non-interest-bearing liabilities		50,259		—					45,858		—
Total non-interest-bearing liabilities		241,414		—					287,368		—
Total liabilities		2,443,081		86,157					2,081,055		60,601
Total equity		499,800							491,718
Total liabilities and total equity	$	2,942,881				3.91	%	$	2,572,773				3.38	%
Net interest income			$	76,480						$	65,266
Net interest rate spread ⁽⁶⁾						1.83	%						1.74	%
Net interest-earning assets ⁽⁷⁾	$	634,197						$	663,326
Net interest margin ⁽⁸⁾						2.70	%						2.66	%
Average interest-earning assets to
interest-bearing liabilities						128.81	%						136.98	%

	(1)	Loans include loans and mortgage loans held for sale, at fair value.
	(2)	Securities include available-for-sale securities and held-to-maturity securities.
	(3)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(4)	Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(5)	Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
	(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Other Data

	As of
	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2023
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		925,497		1,067,248		1,074,979		1,096,214		1,101,191
Common shares outstanding at end of period		23,961,214		23,819,463		23,811,732		23,790,497		23,785,520

Book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20
Tangible book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20

Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000

The MIL Network –

January 29, 2025

MIL-OSI USA: Lummis Secures Key Subcommittee Chairmanship to Champion Wyoming Energy

US Senate News:

Source: United States Senator for Wyoming Cynthia Lummis

January 28, 2025

WASHINGTON, D.C. – U.S. Senator Cynthia Lummis (R-WY) announced she will chair the Environment and Public Works Subcommittee on Clean Air, Climate, Nuclear Innovation and Safety for the 119th Congress:
“Thanks to my position on the Environment and Public Works committee, I can deliver crucial results for the people of Wyoming,” said Lummis. “I am honored to chair this subcommittee, which oversees the EPA Office of Air and Radiation and the Nuclear Regulatory Commission. Wyoming continues to develop its traditional energy sector while investing in new and exciting nuclear technology. I look forward to advancing policies that benefit an all-of-the-above energy approach and spur development across the Cowboy State. ”
Senator Lummis will also serve on the Transportation and Infrastructure and the Fisheries, Water, and Wildlife subcommittees.

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: Hagerty Stands with Small Businesses, Supports Repeal of Misnamed Corporate Transparency Act

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty

January 28, 2025

WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, has joined Senator Tommy Tuberville (R-AL) and his colleagues in introducing legislation that would repeal the Corporate Transparency Act (CTA) and its onerous small business reporting requirements.
Background
The CTA was passed into law as part of the 2021 National Defense Authorization Act. While the bill intended to target shell companies that facilitate illicit activities, in practice, it created substantial compliance burdens for approximately 32.6 million law-abiding small businesses and associations that operate as corporations or limited liability companies. Penalties for noncompliance can result in up to two years in prison and a $10,000 fine. The Biden Administration’s botched implementation of the CTA only worsened the situation; according to a survey conducted by the National Federation of Independent Business (NFIB), 83 percent of their members were unfamiliar with the reporting requirements.
The legislation co-sponsored by Hagerty, the Repealing Big Brother Overreach Act, would repeal the CTA.
Full text of the legislation can be found here.

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: ICYMI—Hagerty Joins America’s Newsroom on Fox News to Discuss Trump’s Foreign Policy Wins, Cabinet Nominations

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, today joined America’s Newsroom on Fox News to discuss President Donald Trump’s foreign policy wins during his first week in office, along with the need to confirm his cabinet nominees.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on the need for reciprocity in tariff deals: “If you think about the tariff situation worldwide, the United States has been treated unfairly for years. President Trump has constantly and consistently talked about reciprocity. This goes all the way back to World War II. We created very favorable terms of trade for nations in Europe, nations like Japan, whose economies have been devastated. We should have time limited [the trade deals]. We should have put some sort of GDP-per-capita limit on that. Because right now, the United States has the lowest tariffs, on a trade weighted basis, of any major economy. Other countries have been taking advantage of us. President Trump sees this, and access to our economy is a privilege, not a right. You saw what happened in Colombia; he knows how to use leverage. He knows how to, essentially, let them know that he’s not going to tolerate bad behavior. And if countries like Colombia don’t want to cooperate with us, they’re not going to have access to our markets.”
Hagerty on pausing funding to other nations within the State Department: “These are all very legitimate and reasonable questions to ask, Martha. There’s a lot of pearl clutching going on in Washington right now. But I can tell you back in 2016, 2017, the State Department acted as quickly as they could to shovel money out the door to NGOs, to the UN, to agencies that didn’t have the U.S.’ best interest at heart. I think it’s entirely appropriate that Secretary [Marco] Rubio put a pause on all of this. I sent a letter to every agency head in the United States government, letting them know, line and verse, how they would violate U.S. law if they were to ‘reprogram funds’ at the very end. We’re going to get a report on all of that here in the next couple of weeks. So, I think this is something that’s entirely legitimate. It’s something that should happen, and we need to make certain that taxpayer [dollars] are being used for things that advance America’s interest.”
Hagerty on the state of Trump’s cabinet nominees: “I actually feel very good about how the nominees are moving through the process. You think about Senator [John] Thune, he’s been extremely diligent, in terms of setting up a process that will get our nominees confirmed as rapidly as possible. The Democrats have done everything they can to slow us down, but Senator Thune, our leader, has done a terrific job of making sure that we’re moving a pace. I feel good about our nominees. [Secretary] Pete Hegseth certainly had everything, including the kitchen sink, thrown at him, and he navigated the process very well. And I think as people got to know him, got to hear from him, they got to realize they had a very smart individual there who is very capable. I expect the same from the other nominees, and that process continues to pace here this week.”
Hagerty on the need to confirm Trump’s cabinet nominees: “President Trump is entitled to his nominees. I think you’ve got a tremendous number of challenges that our nation is facing right now. President Trump opened a very large tent as he came into office, and he selected people that he thinks will help him achieve his goals, achieve the promises that he made to the American public. So, I think, on the balance, Republicans should, certainly, defer to President Trump. Everybody’s entitled to their own opinion—obviously, you’ve seen people vote in different ways from me—but, on the whole, I think people should give President Trump the benefit of the doubt.”

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: Kaine, Young, Reed & Marshall Introduce Bipartisan Bill to Support Mental Health Resources for Health Care Providers

US Senate News:

Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – Today, U.S. Senators Tim Kaine (D-VA), a member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Todd Young (R-IN), Jack Reed (D-RI), and Roger Marshall (R-KS) introduced bipartisan legislation to reauthorize the Dr. Lorna Breen Health Care Provider Protection Act, a comprehensive law Kaine, Young, Reed and Marshall successfully passed in 2022 to help prevent suicide, burnout, and mental and behavioral health conditions among health care professionals. The law has already provided $100 million in funding for mental health care for providers across the country, including $5.6 million in federal funding for Virginia providers at UVA Health, Virginia Commonwealth University, and George Mason University. But provisions of the law that made this funding possible expired last year. The Dr. Lorna Breen Health Care Provider Protection Reauthorization Act would reauthorize these grant programs for five years.
“Dr. Lorna Breen was a physician from Charlottesville who tragically died by suicide after working on the frontlines of the COVID-19 pandemic,” said Kaine. “In 2022, I was honored to work with her family and Senators Young, Reed and Marshall to pass legislation in her honor to help ensure health care workers have access to the mental health support they need. I urge all of my colleagues on both sides of the aisle to join us in standing with our health care heroes by reauthorizing that law, so it can continue to support our healers.”
“Our frontline workers put their own health on the line every day to serve our communities in Indiana and across the country,” said Young. “Congress must act to reauthorize this important program to provide our health care workforce with needed support to prevent suicide and promote mental and behavioral health.”
“Doctors, nurses, and health aids take care of patients who need them. The federal government must do its part to ensure the mental and physical health needs of our health care workforce are taken care of too,” said Reed.
“Our health care providers dedicate their lives to taking care of patients, sometimes, this comes at their own expense,” said Marshall. “We must ensure we’re giving them the support they need when it comes to their mental health. I’m proud to join Senators Kaine and Young in leading the reauthorization of this very important program which helps provide access to mental and behavioral health resources to our health care professionals.”
“Health workers are at the heart of every life saved and ever patient cared for, yet the U.S. health care system is straining our workforce and perpetuating the alarming levels of burnout and poor mental health they are experiencing,” said Corey Feist, JD, MBA, co-founder and CEO of the Dr. Lorna Breen Heroes’ Foundation, which leads the ALL IN: Wellbeing First for Healthcare coalition. “We are immensely grateful to Senators Kaine, Young, Reed, and Marshall for their steadfast commitment to reauthorize and fund the landmark Dr. Lorna Breen Health Care Provider Protection Act and build upon it to address the primary driver of health workers’ burnout—administrative burden.”
Specifically, Dr. Lorna Breen Health Care Provider Protection Reauthorization Act would:
Reauthorize a grant program for health care organizations and professional associations for employee education on strategies to reduce burnout, peer-support programming, and mental and behavioral health treatment for five years. Communities with a shortage of health care workers, rural communities, and those experiencing burnout due to administrative burdens, such as lengthy paperwork, will be prioritized.
Reauthorize a grant program for health profession schools or other institutions to train health care workers and students in strategies to prevent suicide, burnout, mental health conditions, and substance use disorders for five years.
Reauthorize a national evidence-based education and awareness campaign. Currently, the campaign provides hospital and health system leaders with evidence-informed solutions to reduce health care worker burnout. Reauthorization will provide resources for the campaign to continue and expand beyond its current scope.
In addition to Kaine, Young, Reed and Marshall, the legislation is cosponsored by U.S. Senators Shelley Moore Capito (R-WV), Lisa Murkowski (R-AK), Jeanne Shaheen (D-NH), and Mark R. Warner (D-VA).
Full text of the bill is available here.

MIL OSI USA News –

January 29, 2025

MIL-OSI USA: At Hearing, Defense Contractor Agrees with Warren: Legal Loopholes Should Not Lead to Price-Gouging the Military

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
January 28, 2025
Warren: “The Pentagon is spending $440 billion this year on contracts. It’s important for us to get better procedures in place to get some eyes on what they’re doing.”
Defense contractor agrees legal loopholes should not lead to price-gouging the military
Video of Hearing
Washington, D.C. – Today, U.S. Senator Elizabeth Warren (D-Mass.), a member of the Senate Armed Services Committee, questioned Shyam Sankar, Chief Technology Officer and Executive Vice President of Palantir Technologies, about defense contractors exploiting loopholes to price gouge the military.
Senator Warren highlighted an enormous loophole in military acquisition rules that allows defense contractors to market a product as “commercial” even when the product is only made for and sold to our military. As the only customer, the Department of Defense (DoD) has no way to negotiate a fair market price without cost or pricing data, resulting in the department often overpaying for products and services.
In one example, defense contractor Honeywell successfully lobbied Congress to get its engines treated as commercial items and subsequently doubled the price of the engine.
“I completely agree that if you have a fake commercial item that doesn’t actually have commercial applicability, if the company is not able to leverage a diversified R&D base that goes beyond the government, that is the promise that should lead to price performance improvements for the government, then you’re not getting the value of the commercial item,” Mr. Shankar said.
Last year, DoD’s Inspector General released a report that found Boeing paid the Air Force 80 times the available commercial price for a soap dispenser and recommended companies be required to alert the government when prices go up 25% or more.
“I’m sure it is not your intent to team up with another organization in order to price gouge the military,” Senator Warren said to Mr. Sankar. As a result, she asked him to commit to the Pentagon watchdog’s recommendation that bid contractors should provide notice when the price of a good or service goes up by 25%. Mr. Sankar refused to commit Palantir to that recommendation but said he would get back to the committee.
Senator Warren’s bipartisan Stop Price Gouging the Military Act would close loopholes in current acquisition laws, tie financial incentives for contractors to performance, and provide the Department of Defense (DoD) the information necessary to prevent future rip-offs.
Transcript: Hearings to examine defense innovation and acquisition reform.Senate Armed Services CommitteeJanuary 28, 2025
Senator Elizabeth Warren: Thank you, Mr. Chairman. And thank you for holding this hearing. So, DoD buys a lot of stuff from defense contractors, and to protect the military and taxpayers, it’s long been the law that defense contractors must give DoD contracting officers certified cost and pricing data to help verify that a price that’s being charged is fair and reasonable.
One of the big exceptions to this, though, is for, “commercial goods and services,” based on the principle that the market will make sure it’s a fair price. If you could buy it on Amazon, that’s a fair price. You don’t have to go into all the background on how you got there. I get that, and I am all for commercial buying. But the fact is, this is turned into a massive loophole where big defense contractors withhold data, even though there’s no market, and DoD, effectively the only customer, doesn’t have this information so that these giant companies can price gouge the military.
I want to give you an example here. For years, the army was buying Chinook helicopter engines from Honeywell, and Honeywell successfully lobbied Congress so its engines would be treated as commercial, and Honeywell wouldn’t have to turn over the certified cost and pricing data. Now, Mr. Sankar, you’re the CTO of Palantir, a billion-dollar tech company that contracts with DoD once Honeywell got the engine moved to a commercial engine.
What do you think happened to the price?
Mr. Shyam Sankar, Chief Technology Officer and Executive Vice President, Palantir Technologies: I’m not familiar, Senator.
Senator Warren: Well, it went up, not down, by 100%, and that’s the problem we’ve got here too often. DOD is outgunned when it is negotiating with these giant defense contractors, which is exactly why it needs the cost and pricing data to avoid being ripped off. Now, Mr. Sankar, your company, Palantir, is looking to create a consortium with another defense tech company, Anduril, is that right? Yeah. To jointly bid for something called “other transactions agreements,” or since we have to give everything initial OTAs, where the government also waives taxpayer protections on how to get pricing information. And I’m sure it is not your intent to team up with another organization in order to price gouge the military. This next question should probably be easy here. DoD’s inspector general recommended requiring bid contractors to alert military contracting offices when the price of a good or service goes up by 25%. In other words, move it up so other people know, and can get eyes on it. Mr. Sankar, do you agree with the IGs recommendation?
Mr. Sankar: I do agree. I think the price signal is part of the competitive market and encouraging more entrants and capital to efficiently be allocated to improve things.
Senator Warren: Excellent. And will Palantir agree to do that voluntarily?
Mr. Sankar: I would defer to my team here, but I don’t think we would have any conceptual disagreement with that.
Senator Warren: Okay, so can I treat that as a yes?
Mr. Sankar: I would defer to my team.
Senator Warren: Well, I want to be clear here because the—
Mr. Sankar: As the CTO, I don’t speak on the business side.
Senator Warren: Fair enough. Look, we only know about most of these overcharges because of the work that the Department of Defense’s Inspector General has done. This is the person who President Trump just illegally fired on Friday night, along with at least 16 other IGs. I am deeply concerned that this administration is removing exactly the cops on the beat that we need to identify waste and to prevent these kinds of increases.
So, Mr. Sankar, do you think it helps or hurts national security to have Senate-confirmed watchdogs, who can be there on pricing questions, like this, to call balls and strikes?
Mr. Sankar: As a technologist, what I can speak to is, when you look at Intel in the late 60s, 96% of the market for integrated circuits was the Apollo program and the DOD. But Bob Noyce, says, the co-founder of Intel, the CO inventor the transistor, always envisioned a bigger commercial market, our ability to deliver a salt breaker and ultimately have an asymmetric threat against the Soviets—
Senator Warren: Can you relate that to the question?
Mr. Sankar: Yeah. I promise it will get there. Ability to deliver a salt breaker was because, actually he could, he could create integrated circuits that were 1000s of times cheaper than when we were building Apollo. That was only possible because he had an eye towards the commercial market. So I completely agree that if you have a fake commercial item that doesn’t actually have commercial applicability, if the company is not able to leverage a diversified R&D base that goes beyond the government, that is the promise that should lead to price performance improvements for the government, then you’re not getting the value of the commercial item. But when we look at space, for example, I grew up in the shadow of the Space Coast, the cost to get a kilogram into orbit for the shuttle, was $50,000 a kilogram, the cost with starship heavy reuse will be 10 bucks.
Senator Warren: Mr. Sankar, I very much appreciate that you’re trying to push here on cost. I am too. The question I had asked you is whether or not we need IGs—who are the whistleblowers who say people are cheating on the cost, for example, on the definition of commercial—or somebody who can help us bring these costs down. The Pentagon is spending $440 billion this year on contracts. It’s important for us to get better procedures in place to get some eyes on what they’re doing. And IGs help us do that. Thank you.

MIL OSI USA News –

January 29, 2025

MIL-OSI New Zealand: 29 January 2025 A new home for a new year The new 29 one-bedroom apartment social housing development in Nelson is ready to welcome Kāinga Ora customers.

Source: New Zealand Government Kainga Ora

Local iwi this week blessed the new three-storey development in Waimea Road in Nelson South, which was built by local developer JV Properties Limited. Neighbours and other local stakeholders also had the chance to look through the homes before customers move in.

Julia Campbell, Regional Director Nelson, Marlborough and West Coast, says people from the social housing register who have been waiting for a one-bedroom home will begin moving into the new development from early February. Some of the people moving in will now have a permanent place to call home after living in transitional housing for some time.

This, and other trees, that were already on the property were retained as part of the new development.

“Most of the people who are on the social housing register and in need of a place to live in Nelson are waiting for a one-bedroom home, so the completion of this development is a significant milestone,” Ms Campbell says.

“Our specialist placement team has thought very carefully about who will live in these homes. During pre-housing conversations, we have spoken to prospective customers about their connections to the community and any support they may need to live well in their new home in the future.

“Our team will continue to support everyone who will be living there to settle in well over the coming weeks and months. Local transitional housing providers will also continue to work with the people who are moving in from transitional housing,” she says.

Construction of the new development began in October 2023. Kāinga Ora has an agreement with JV Properties Limited to purchase the homes upon completion. It expects to settle on the purchase of the homes this week.

There are currently another 36 Kāinga Ora homes under construction in Nelson Tasman, including six homes in Oxford Street in Richmond and 26 new homes in Neale Avenue in Stoke, all of which Kāinga Ora has agreed to purchase from developers when they are completed. Four homes are also under redevelopment in Boundary Road in Nelson.

See our Nelson region for more information.

The new Waimea Road homes and a communal outdoor area

Page updated: 29 January 2025

MIL OSI New Zealand News –

January 29, 2025

MIL-OSI Security: Two New Jersey Men Convicted For Their Roles In The Stephen Crane Village Drug Trafficking Organization, Including A Leader Convicted Of Murder

Source: Office of United States Attorneys

NEWARK, N.J. – Yesterday afternoon a Newark jury convicted two New Jersey men for their roles in a violent drug trafficking organization, Acting U.S. Attorney Vikas Khanna announced.

Michael Mayse, 38, of Newark, a leader of the Stephen Crane Drug Trafficking Organization, was convicted of murder, drug trafficking conspiracy, and related drug and firearms offenses.

Gary Shahid, 66, of Newark, a drug supplier of the Stephen Crane Drug Trafficking Organization, was convicted of drug trafficking conspiracy, distribution and possession with intent to distribute controlled substances, and firearms offenses.

“This Office’s commitment to prosecuting violent crime and serious drug trafficking offenses is unwavering. This case demonstrates the strength of our partnerships with federal, state, and local law enforcement and ensures that serious consequences will follow for these defendants.”

Acting U.S. Attorney Vikas Khanna

“ATF remains steadfast in identifying and apprehending those who are terrorizing our neighborhoods with violence and senseless disorder,” ATF Special Agent in Charge L.C. Cheeks, Jr., Newark Field Division stated. “These guilty verdicts bring accountability to violent criminals whose actions disregard criminal law, human life, and public safety. We will continue to work alongside our law enforcement partners and secure the safety of our communities.”

“Drug trafficking can be a dangerous and violent game, often entangled with the deadly consequences. Today’s conviction against these two members of the Stephen Crane Village Drug Trafficking Organization, who repeatedly used violence when operating their criminal enterprise, shows the commitment the DEA and our law enforcement partners have in keeping our communities safe and making sure those responsible for these types of violent crimes face the consequences for their actions,” said DEA Special Agent in Charge Cheryl Ortiz, New Jersey Field Division.

According to documents filed in this case and statements made in court:

Stephen Crane Village is a public housing complex near Branch Brook Park, on the border of Newark, New Jersey and Belleville, New Jersey. Stephen Crane Village was the site of an open-air drug market controlled by a violent drug trafficking organization (“DTO”) from at least February 2019 through February 2020.

Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, electronic surveillance, and the analysis of telephone call detail records, law enforcement determined that the members of the DTO conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, in and around Stephen Crane Village.

The DTO used a drug stash apartment in Stephen Crane Village to package and store their drugs for distribution. The DTO sold significant quantities of drugs to confidential sources and an undercover agent. On December 15, 2019, Mayse entered the DTO’s stash apartment in Stephen Crane Village and murdered a member of the DTO over a monetary debt relating to the drug trafficking conspiracy.

The count of conspiracy to distribute at least 100 grams of heroin carries a minimum sentence of five years in prison, maximum penalty of 40 years in prison, and a fine of up to $5 million. The counts of distribution of heroin, fentanyl, and cocaine each carry a maximum of 20 years in prison and a fine of $1 million. The count for of possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 500 grams or more of cocaine carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. The count of murder during and in relation to a drug trafficking crime carries a maximum sentence of life in prison and a $250,000 fine. The count of discharging a firearm during and in relation to a drug trafficking crime carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $250,000 fine. The counts of possessing a firearm in furtherance of a drug trafficking crime carries a minimum sentence of 5 years in prison, a maximum sentence of life in prison, and a $250,000 fine.

Acting U.S. Attorney Khanna credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire; the Newark Police Department, under the direction of Director Emanuel Miranda; and the Belleville Police Department, under the direction of Chief Mark Minichini. He also thanked the U.S. Marshals Service and the Federal Bureau of Investigation for their assistance with this case.

The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton and Assistant U.S. Attorney Jason Goldberg of the Organized Crime and Gangs Unit in Newark.

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Defense counsel:

Thomas Ambrosio, Esq., for Gary Shahid

Joel Silberman, Esq., and Keith Oliver, Esq., for Michael Mayse

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Federal Fugitive Sentenced to 15 Years in Prison for Armed Drug Trafficking

Source: Office of United States Attorneys

MOBILE, AL – A Mobile man was sentenced to 180 months in prison for trafficking drugs and possessing firearms in furtherance of drug trafficking crimes while being a federal fugitive.

According to court documents, Tesean R. James, 30, was convicted of a bulk marijuana trafficking conspiracy in federal court in 2019. After his release from federal prison in September 2021, James absconded from court-ordered supervision and remained a fugitive for more than two years.

In July 2023, federal and local law enforcement agents attempted to arrest James on his fugitive warrant. James led agents on a high-speed vehicle chase through a residential neighborhood in Mobile, bailing out of his vehicle and eluding capture on foot. In James’s abandoned vehicle, agents recovered two pistols and seven pounds of bulk marijuana. Later, in December 2023, agents captured James in Mobile after a brief foot chase. Agents executed a search warrant at the house where James had been staying, recovering more than 34 pounds of bulk marijuana, 1.5 kilograms of psilocybin mushrooms, more than $34,000 in drug proceeds, and two guns, one of which had previously been reported stolen.

James confessed to police that he knew he had active warrants and was a federal fugitive. James admitted that he regularly received shipments of 50 pounds of marijuana at a time, which he coordinated via encrypted apps on his cell phones. Agents searched James’s cell phones, finding evidence that he had been selling marijuana and other narcotics, including mushrooms, prescription pills, and codeine syrup, since being released from federal prison in September 2021. James’s phones also contained evidence that he knew he was a fugitive, including a photo of James that had been posted on the news as “Fugitive of the Week.”

In addition to the 180-month prison term, Chief United States District Judge Jeffrey U. Beaverstock ordered James to serve a five-year term of supervised release upon his release from prison, during which time he will receive mental health treatment. The court did not impose a fine, but Judge Beaverstock ordered James to pay $300 in special assessments. The court also forfeited James’s guns and electronic devices to the United States.

U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, Homeland Security Investigations, and the Mobile Police Department investigated the case.

Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: U.S. Attorney’s Office Recovers More Than $55 Million in Civil Settlements and Judgments in Calendar Year 2024

Source: Office of United States Attorneys

SAN ANTONIO – U.S. Attorney Jaime Esparza announced today that the Western District of Texas recovered $55,969,678.60 in settlements and judgments in over 25 affirmative civil enforcement cases between January 1, 2024, and December 31, 2024. This figure includes recoveries in both local matters and cases handled jointly with other U.S. Attorney’s Offices and the Department of Justice’s Civil Division.

“I am proud of my office’s work this year to achieve several significant civil recoveries for American taxpayers and the people of the Western District of Texas,” said U.S. Attorney Esparza. “We will continue to work with our agency and law enforcement partners to vigorously pursue civil remedies on behalf of the United States when appropriate.”

The office’s largest civil recoveries were obtained in False Claims Act (FCA) matters. The most significant FCA recoveries include:

a $21.75 million settlement with Medisca, Inc. to resolve allegations concerning false and inflated Average Wholesale Prices for ingredients used in compound prescriptions;
a $15.875 million settlement with Booz Allen Hamilton to resolve allegations of false claims related to computer military training simulators and systems;
a $4.2 million settlement with Elara Caring and its subsidiaries to resolve allegations of false claims for hospice services provided to patients who were not terminally ill;
a $2.3 million judgment against Ma Acupuncture Center and Dr. Dongxin Ma to resolve allegations of inflated acupuncture bills submitted to the Department of Veterans Affairs;
a $2 million settlement with Five Point Enterprises LLC to resolve allegations of false claims for educational assistance benefits under the Post-9/11 GI Bill; and
a $1.3 million settlement with Oncology San Antonio and Dr. Jayasree Rao to resolve allegations of unlawful kickbacks and medically unnecessary tests and treatments.

The U.S. Attorney’s Office obtained several smaller—but nevertheless significant—FCA recoveries in COVID-fraud cases, including a $680,000 settlement with Lafayette RE Management LLC and Thibault Adrien, and a $425,710 settlement with Freedom Solar LLC. In both cases, the government alleged the settling parties made false certifications in applying for and/or obtaining forgiveness of Paycheck Protection Program loans.

Another area of emphasis for the Western District of Texas is the recovery of civil penalties under the Controlled Substances Act (CSA), which imposes strict regulatory requirements on doctors, pharmacists, and other individuals and entities that handle dangerous drugs and precursor chemicals. Significant CSA recoveries in 2024 include:

a $600,000 settlement with Dr. Alfonso Luevano (of which $465,884.22 was attributed to CSA civil penalties and $134,115.78 was attributed to FCA damages) to resolve allegations related to unlawful prescriptions for Schedule II controlled substances;
a $300,000 settlement with Shrieve Chemical Company LLC to resolve allegations the company violated recordkeeping requirements relating to the importation and distribution of listed chemicals, manufactured a listed chemical without registering, and made a drop shipment to a customer without first importing the chemical to its registered location; and
a $210,000 settlement with Sachnikumar Patel, RPh., Medical Arts Pharmacy, and Express Pharmacy to resolve allegations they unlawfully dispensed “office use” prescriptions, failed to register as reverse distributors, and violated CSA recordkeeping requirements.

The claims resolved by the settlements referenced above are allegations only and there has been no determination of liability.

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MIL Security OSI –

January 29, 2025

MIL-OSI Security: Maryland Life Insurance Broker Convicted in $20-Million Insurance Fraud Scheme

Source: Office of United States Attorneys

Baltimore, Maryland – After a seven-day trial, a federal jury found James William Wilson, Jr., 77, of Owings Mills, Maryland, guilty of 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the verdict with Acting Deputy Assistant Attorney General Stuart M. Goldberg, Department of Justice Tax Division, and Special Agent in Charge Kareem Carter, Internal Revenue Service-Criminal Investigation Division, Washington Field Office.

According to court documents and evidence presented at trial, Wilson defrauded life-insurance companies by securing more than 40 life-insurance policies. Wilson’s scheme included mispresenting policy applicants’ health, wealth, and existing life-insurance coverage. The total death benefits from these policies exceeded $20 million.

Additionally, Wilson defrauded individual investors to receive funds that he used to pay premiums on the fraudulently obtained life-insurance policies. Wilson concealed the fraud by transferring the proceeds to multiple bank accounts, including accounts in the name of trusts. He then filed false individual income-tax returns for 2018 and 2019, which concealed the fraudulent proceeds from each year, approximately $5.7 million and $2 million, respectively.

Wilson is scheduled to be sentenced at 9:30 a.m., on May 1, 2025, and faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering; and three years in prison for each count of filing a false tax return. He also faces two years in prison for one count of aggravated identity theft. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

In addition, Wilson’s wife, Maureen, 76, has also been charged with fraud, conspiracy, money laundering, and filing false tax returns for 2018 and 2019. Her trial is scheduled for March 3, 2025.

IRS-Criminal Investigation investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General.

U.S. Attorney Barron commended the IRS-Criminal Investigation Division for their work on the case. Mr. Barron also thanked Assistant U.S. Attorneys Matthew P. Phelps and Philip Motsay and Trial Attorneys Shawn Noud and Richard Kelley, who prosecuted the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Guatemalan National Pleads Guilty to Unlawful Reentry

Source: Office of United States Attorneys

BOSTON – A Guatemalan man pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after deportation.

Edilzar Morales-Barillas, 36, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 7, 2025. Morales-Barillas was charged on July 31, 2024.

Morales-Barillas was deported from the United States on May 14, 2021. Sometime after his May 2021 removal, Morales-Barillas unlawfully reentered the United States. Immigration and Customs Enforcement became aware of Morales-Barillas’ unlawful presence in the United States on May 27, 2023, following his arrest for a fourth offense of operating under the influence of alcohol.

The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The defendant will be subject to deportation proceedings upon completion any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Criminal Division is prosecuting the case.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: New Orleans Man Pleads Guilty To Federal Drug Charges

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on January 16, 2025, JONAS RICHARD (“RICHARD”), age 43, pled guilty to three counts of a superseding indictment charging him with distribution of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).

As to each count, RICHARD faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, at least three years of supervised release, and a mandatory special assessment fee of $100.00. RICHARD is set for sentencing on April 24, 2025.

According to court documents, on August 24, 2023, as part of operation Big Easy, undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) while walking through the French Quarter in New Orleans, were approached by RICHARD about purchasing narcotics. After agreeing to a price for heroin, RICHARD contacted his supplier/ co-defendant. Later, RICHARD’s supplier arrived and gave the narcotics to RICHARD, who then gave the narcotics to the undercover agents. After testing, the narcotics were identified as fentanyl and weighed 3.36 grams.

Following the August 24, 2023 sale, RICHARD maintained telephone contact with the undercover agent and on August 28, 2023, met the agents in a New Orleans parking lot. On this occasion, RICHARD sold them 16.26 grams of fentanyl.

On September 15, 2023, RICHARD sold the agents a half ounce of fentanyl laced heroin in two packages. Each package weighed 12.10 and 4.02 grams, respectively.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorney Sarah Dawkins of the Violent Crime Unit.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Former Colorado Springs Man Sentenced For Defrauding Taxpayer Funded COVID-19 Relief Program

Source: Office of United States Attorneys

DENVER – The United States Attorney’s Office for the District of Colorado announces that Charles Lacona, Jr., 67, formerly of Colorado Springs, was sentenced to 24 months in federal prison and ordered to pay $549,274.14 in restitution after being found guilty by a federal jury on two counts of wire fraud and one count of money laundering related to fraudulent COVID-19 related funds he received through the Paycheck Protection Program (PPP).

According to the facts established at trial, between April 2020 and April 2021, Lacona devised and participated in a scheme to defraud a lender of $513,732.50 in PPP loans. Lacona inflated payroll costs and gross receipts, made false statements and certifications, and submitted fabricated tax documents and payroll reports. During that same period, Lacona unsuccessfully applied for additional emergency government assistance through the Economic Injury Disaster Loan (EIDL) program. Lacona used some of the fraudulently obtained funds to purchase a Cadillac CT6 for $67,704.13.

“Theft of taxpayer dollars will not be tolerated,” said Acting United States Attorney J. Bishop Grewell. “This sentence sends a message that people who defrauded the United States Government will be held accountable for their actions.”

“IRS Criminal Investigation is committed to holding accountable those who exploited the COVID-19 pandemic relief programs,” said Amanda Prestegard, Special Agent In Charge, Denver Field Office. “Investigating those who defrauded programs meant for hard working Americans will remain a top priority for our agency.”

United States District Court Judge Daniel D. Domenico presided over the trial. IRS Criminal Investigation handled the investigation. Assistant United States Attorneys Craig Fansler and Nicole Cassidy handled the prosecution.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Gangster Disciples Member Sentenced for Illegally Possessing a Firearm

Source: Office of United States Attorneys

COLUMBUS, Ga. – A validated member of the Gangster Disciples with a violent criminal past in the Columbus community was sentenced to more than 13 years in prison for illegally possessing a firearm resulting from a Project Safe Neighborhoods case.

Christopher Gilliam, 36, of Columbus, was sentenced to serve 162 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land on Jan. 28. Gilliam pleaded guilty to one count of possession of a firearm by a convicted felon on Oct. 29, 2024. There is no parole in the federal system.

“Violent convicted felons caught illegally with firearms in the Middle District of Georgia will find their cases in federal court,” said Acting U.S. Attorney Shanelle Booker. “This case is another example of the kind of effective law enforcement partnerships helping us track down and hold the most dangerous repeat offenders accountable.”

“Project Safe Neighborhoods is not just a program; it is a powerful, unyielding effort to dismantle violent criminal networks and rid our communities of those who bring harm. Through strategic enforcement and collaboration, we will ensure that violent offenders, like Gilliam, face justice in federal court,” said ATF Atlanta Assistant Special Agent in Charge Beau Kolodka.

“If you are bold enough to commit a crime involving a gun coupled with gang involvement, we will be courageous enough to arrest you for your crimes against others,” said Muscogee County Sheriff Greg Countryman. “We will continue to work with our federal partners to promote safer neighborhoods and communities.”

According to court documents and statements referenced in court, Gilliam was wanted for an active outstanding arrest warrant for aggravated assault when law enforcement tracked him to his girlfriend’s residence in Columbus on July 21, 2023. Gilliam was taken into custody and officers found a stolen 9mm semiautomatic pistol with a laser and a loaded 15-round magazine in plain view. Gilliam has a lengthy criminal history, to include prior convictions for aggravated assault. It is illegal for a convicted felon to possess a firearm.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results.

The case was investigated by the Muscogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Assistant U.S. Attorney Crawford Seals Chief prosecuted the case for the Government.

MIL Security OSI –

January 29, 2025

MIL-OSI Security: Sanford Man Sentenced to 10 Years After Officer Sees Drugs Protruding from His Shirt Pocket

Source: Office of United States Attorneys

PORTLAND, Maine: A Sanford man was sentenced today in U.S. District Court in Portland for possessing fentanyl with intent to distribute.

U.S. District Judge Nancy Torresen sentenced Nicholas Delahunt, 39, to 120 months in prison to be followed by eight years of supervised release.

According to court records, in October 2023, an officer from the Sanford Police Department noted a vehicle pulled over on the side of the road. The officer queried the vehicle and learned that the registered owner, Delahunt, had a suspended license. Police confirmed Delahunt was operating the vehicle. While speaking with him on the side of the road, the officer noted a large plastic baggie protruding from his sweatshirt front pocket that appeared to contain narcotics. Delahunt removed the bag, which was found to contain approximately 166 grams of fentanyl. A further search of Delahunt’s person revealed three additional grams of fentanyl. Just 2 grams of fentanyl is considered a potentially lethal dose. Delahunt was previously convicted in Maine in 2021 for unlawful trafficking of scheduled drugs.

The FBI investigated the case with assistance from the Sanford Police Department.

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MIL Security OSI –

January 29, 2025

MIL-OSI Security: Boynton Beach Man Sentenced To 5 Years For Distributing Videos Depicting The Sexual Abuse Of Children

Source: Office of United States Attorneys

Jacksonville, Florida – Chief United States District Judge Marcia Morales Howard has sentenced Timothy Burch Morris (46, Boynton Beach) to five years in federal prison for distributing over the internet two videos depicting the sexual abuse of young children. Morris was also ordered to serve a five-year term of supervised release, pay $10,000 in assessments for child victims, and register as a sex offender.

According to court documents, on November 20, 2023, an FBI agent (UC) in Jacksonville was working in an undercover capacity on a particular social media application (app) to identify individuals who were attempting to sexually exploit children using the internet. The UC joined an online public chatroom on the app posing as an adult with access to a child. App user “timkw37138,” who was later identified as Morris, posted within this public group – “Hi all. 44 very well hung male in Florida. My PM is open.” Later that day, the UC and Morris began texting using the private messaging feature of the app. Morris typed, “I just love stroking to guys [sic] daughters,” and stated that his favorite age is “prob 13-15 give or take a couple years neither side.”

On November 22, 2023, when asked to verify if he was “legit,” Morris sent the UC a sexually explicit photo of himself. Five minutes later, Morris distributed two videos to the UC depicting minors being sexually abused. During another online conversation on November 27, 2023, Morris sent the UC another sexually explicit photo of himself taken at his residence.

After further investigation, FBI agents arrested Morris. During a search incident to his arrest, agents seized Morris’s cellphone which contained several sexually explicit photos of Morris that he had taken while at his home that were consistent with those sent to the UC. During an interview with law enforcement, Morris admitted having the “timkw37138” user account on the app for over five years.

This case was investigated by the Federal Bureau of Investigation in Jacksonville and West Palm Beach, with assistance from the Boynton Beach Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

MIL Security OSI –

January 29, 2025

MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

FAIR LAWN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported a net loss of $21.2 million, or $0.21 per basic and diluted share, for the quarter ended December 31, 2024, as compared to net income of $6.6 million, or $0.06 per basic and diluted share, for the quarter ended December 31, 2023. The net loss for the quarter ended December 31, 2024 reflected lower non-interest income mainly due to the previously disclosed balance sheet repositioning transaction. As part of the Company’s strategy to improve future earnings and expand its net interest margin, the Company sold $352.3 million of debt securities available for sale during the fourth quarter of 2024, and the proceeds from the sale were used to fund loan growth of $72.9 million, purchase $78.1 million of higher yielding debt securities and prepay $170.0 million of higher cost borrowings. This balance sheet repositioning transaction resulted in a pre-tax loss on the sale of securities and extinguishment of debt of $37.9 million. The quarter ended December 31, 2024 results also reflected a higher provision for credit losses, partially offset by higher net interest income, mainly due to an increase in interest income, lower non-interest expense and lower income tax expense. For the quarter ended December 31, 2024, the Company reported core net income of $11.4 million, an increase of $1.3 million, or 12.4%, compared to core net income of $10.1 million for the quarter ended December 31, 2023. The benefit of the balance sheet repositioning transaction was modest during the fourth quarter, as the settlement of the transaction occurred late in the quarter. (Refer to “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of GAAP net income to core net income.)

For the year ended December 31, 2024, the Company reported a net loss of $11.7 million, or $0.11 per basic and diluted share, as compared to net income of $36.1 million, or $0.35 per basic and diluted share, for the year ended December 31, 2023. The year ended December 31, 2024 reflected lower net interest income, mainly due to an increase in interest expense, higher provision for credit losses and lower non-interest income due to loss on securities transactions resulting from the balance sheet repositioning transaction described above, partially offset by lower non-interest expense and lower income tax expense. Non-interest income for the year ended December 31, 2024 included a $34.6 million loss on the sale of securities and non-interest expense included a $3.4 million loss on extinguishment of debt.

Thomas J. Kemly, President and Chief Executive Officer commented: “The Company maintained a strong balance sheet and capital position, which will allow us to benefit from an improving operating environment. Additionally, our fourth quarter repositioning strategy should result in improved future earnings and net interest margin. We will continue to examine and implement prudent strategies that we believe will build a foundation for the future success of the Company and increased profitability.”

Results of Operations for the Three Months Ended December 31, 2024 and December 31, 2023

A net loss of $21.2 million was recorded for the quarter ended December 31, 2024, a decrease of $27.8 million, compared to net income of $6.6 million for the quarter ended December 31, 2023. The decrease in net income was primarily attributable to a $35.0 million decrease in non-interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $1.1 million increase in net interest income, a $1.4 million decrease in non-interest expense, and a $6.4 million decrease in income tax expense.

Net interest income was $46.4 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 2.4%, from $45.3 million for the quarter ended December 31, 2023. The increase in net interest income was primarily attributable to a $6.1 million increase in interest income partially offset by a $5.0 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields. Market interest rates increased 100 basis points throughout the 2023 period and were subsequently reduced 100 basis points during the last four months of 2024. The increase in interest expense on deposits was driven by the higher rate environment coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products throughout the majority of the 2024 fiscal year. However, during the fourth quarter, competitive pressures eased, and deposits became easier to attract, resulting in a reduced cost of deposits. The decrease in interest expense on borrowings was also impacted by the lower interest rates for new borrowings, along with a decrease in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $84,000 for the quarter ended December 31, 2024, compared to $419,000 for the quarter ended December 31, 2023.

The average yield on loans for the quarter ended December 31, 2024 increased 22 basis points to 4.88%, as compared to 4.66% for the quarter ended December 31, 2023, as interest income was influenced by the interest rate increases that occurred in 2023 and loan growth. The average yield on securities for the quarter ended December 31, 2024 increased 41 basis points to 2.99%, as compared to 2.58% for the quarter ended December 31, 2023, as new securities purchased during 2024 were at higher interest rates. The average yield on other interest-earning assets for the quarter ended December 31, 2024 increased 36 basis points to 6.00%, as compared to 5.64% for the quarter ended December 31, 2023, due to an increase in the average balance of higher yielding Federal Home Loan Bank stock, as compared to average cash balances, which decreased in the 2024 period.

Total interest expense was $67.2 million for the quarter ended December 31, 2024, an increase of $5.0 million, or 8.0%, from $62.2 million for the quarter ended December 31, 2023. The increase in interest expense was primarily attributable to a 37 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, partially offset by a 31 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings. Interest expense on deposits increased $8.5 million or 19.6%, and interest expense on borrowings decreased $3.5 million, or 18.8%.

The Company’s net interest margin for the quarter ended December 31, 2024 increased 3 basis points to 1.88%, when compared to 1.85% for the quarter ended December 31, 2023. The weighted average yield on interest-earning assets increased 22 basis points to 4.61% for the quarter ended December 31, 2024 as compared to 4.39% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 20 basis points to 3.38% for the quarter ended December 31, 2024 as compared to 3.18% for the quarter ended December 31, 2023. The net interest margin increased for the quarter ended December 31, 2024, as the increase in the average yield on interest-earning assets slightly outweighed the average cost of interest-bearing liabilities.

The provision for credit losses for the quarter ended December 31, 2024 was $2.9 million, an increase of $1.7 million, from $1.2 million for the quarter ended December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs totaling $1.4 million and an increase in loan performance qualitative factors.

Non-interest income was $(23.7) million for the quarter ended December 31, 2024, a decrease of $35.0 million, or 310.8%, from $11.2 million for the quarter ended December 31, 2023. The decrease was primarily attributable to the loss on securities transactions of $34.6 million resulting from the balance sheet repositioning transaction and a decrease in bank-owned life insurance income of $2.4 million, attributable to death benefits in 2023, partially offset by a $1.7 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities.

Non-interest expense was $46.6 million for the quarter ended December 31, 2024, a decrease of $1.4 million, or 2.9%, from $48.0 million for the quarter ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.9 million and a decrease in federal deposit insurance premiums of $3.2 million, partially offset by an increase in loss on the extinguishment of debt of $3.1 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The decrease in federal deposit insurance premiums was due to the 2023 quarter including a one-time Federal Deposit Insurance Corporation special assessment recorded in December 2023. During the quarter ended December 31, 2024, the Company prepaid $200.0 million in FHLB borrowings, inclusive of the $170.0 million as part of a balance sheet repositioning transaction which resulted in a $3.4 million loss on the extinguishment of debt.

Income tax benefit was $5.5 million for the quarter ended December 31, 2024, a decrease of $6.4 million, as compared to income tax expense of $865,000 for the quarter ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 20.7% and 11.6% for the quarters ended December 31, 2024 and 2023, respectively.

Results of Operations for the Years Ended December 31, 2024 and December 31, 2023

A net loss of $11.7 million was recorded for the year ended December 31, 2024, a decrease of $47.7 million, compared to net income of $36.1 million for the year ended December 31, 2023. The decrease in net income was primarily attributable to a $27.9 million decrease in net interest income, a $9.7 million increase in provision for credit losses and a $25.5 million decrease in non-interest income, partially offset by a $1.1 million decrease in non-interest expense, and a $14.2 million decrease in income tax expense.

Net interest income was $178.0 million for the year ended December 31, 2024, a decrease of $27.9 million, or 13.5%, from $205.9 million for the year ended December 31, 2023. The decrease in net interest income was primarily attributable to an $84.3 million increase in interest expense on deposits and borrowings, partially offset by a $56.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases in 2023. The increase in interest expense on deposits and borrowings was driven by these same rate increases coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products along with higher balances. The increase in interest expense on borrowings was also impacted by the increase in interest rates for new borrowings along with an increase in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $960,000 for the year ended December 31, 2024, compared to $817,000 for the year ended December 31, 2023.

The average yield on loans for the year ended December 31, 2024 increased 46 basis points to 4.90%, as compared to 4.44% for the year ended December 31, 2023, as interest income increased due to rising rates and loan growth. The average yield on securities for the year ended December 31, 2024 increased 40 basis points to 2.86%, as compared to 2.46% for the year ended December 31, 2023 as $124.6 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes continued to reprice higher during the year. The average yield on other interest-earning assets for the year ended December 31, 2024 increased 73 basis points to 6.27%, as compared to 5.54% for the year ended December 31, 2023, due to the rise in interest rates, as noted above.

Total interest expense was $273.4 million for the year ended December 31, 2024, an increase of $84.3 million, or 44.6%, from $189.1 million for the year ended December 31, 2023. The increase in interest expense was primarily attributable to a 109 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits, coupled with an increase in interest on borrowings of $7.1 million due to an 11 basis point increase in the cost of total borrowings and an increase in the average balance of borrowings.

The Company’s net interest margin for the year ended December 31, 2024 decreased 34 basis points to 1.82%, when compared to 2.16% for the year ended December 31, 2023. The weighted average yield on interest-earning assets for the year ended December 31, 2024 increased 47 basis points to 4.61%, as compared to 4.14% for the year ended December 31, 2023. The average cost of interest-bearing liabilities increased 92 basis points to 3.44% for the year ended December 31, 2024 as compared to 2.52% for the year ended December 31, 2023. The increase in yields for the year ended December 31, 2024 was due to the impact of market rate increases between periods, with rates decreasing just prior to the fourth quarter of 2024. The net interest margin decreased for the year ended December 31, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

The provision for credit losses for the year ended December 31, 2024 was $14.5 million, an increase of $9.7 million, from $4.8 million for the year ended December 31, 2023. The increase in provision for credit losses during the year was primarily due to net charge-offs totaling $9.6 million and an increase in loan performance qualitative factors.

Non-interest income was $1.9 million for the year ended December 31, 2024, a decrease of $25.5 million, or 93.1%, from $27.4 million for the year ended December 31, 2023. The decrease was primarily attributable to an increase in the loss on securities transactions of $25.0 million, and a decrease in bank-owned life insurance income of $2.8 million, attributable to death benefits in 2023, partially offset by a $1.9 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities.

Non-interest expense was $181.3 million for the year ended December 31, 2024, a decrease of $1.1 million, or 0.6%, from $182.4 million for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $11.4 million, partially offset by an increase in professional fee of $4.3 million, an increase in merger-related expenses of $1.1 million and an increase in loss on extinguishment of debt of $3.1 million, resulting primarily from the repositioning transaction, and an increase in other non-interest expense of $2.0 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The increase in professional fees was primarily related to an increase in legal, regulatory and compliance-related costs while the increase in other non-interest expense related to swap transactions. During the quarter ended December 31, 2024, the Company prepaid $170.0 million of FHLB borrowings as part of the previously discussed balance sheet repositioning transaction which resulted in a $3.3 million loss on the extinguishment of debt.

Income tax benefit was $4.3 million for the year ended December 31, 2024, a decrease of $14.2 million, as compared to income tax expense of $10.0 million for the year ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 26.8% and 21.6% for the years ended December 31, 2024 and 2023, respectively.

Balance Sheet Summary

Total assets decreased $170.1 million, or 1.6%, to $10.5 billion at December 31, 2024 as compared to $10.6 billion at December 31, 2023. The decrease in total assets was primarily attributable to a decrease in cash and cash equivalents of $134.0 million, a decrease in debt securities available for sale of $67.6 million, and a decrease in Federal Home Loan Bank stock of $20.6 million, partially offset by an increase in loans receivable, net, of $37.5 million and an increase in other assets of $15.6 million.

Cash and cash equivalents decreased $134.0 million, or 31.7%, to $289.2 million at December 31, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $446.2 million, a decrease in borrowings of $448.1 million, and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from the sale of securities of $321.2 million, principal repayments on securities of $185.6 million, and repayments on loans receivable, and an increase in total deposits of $249.6 million.

Debt securities available for sale decreased $67.6 million, or 6.2%, to $1.0 billion at December 31, 2024 from $1.1 billion at December 31, 2023. The decrease was attributable to sales of securities with an amortized cost of $357.1 million which resulted in a realized loss of $35.9 million, and repayments on securities of $140.5 million, which was partially offset by purchases of securities of $404.7 million and a decrease in the gross unrealized loss on securities of $34.9 million. The Company sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing borrowings and purchase higher-yielding debt securities to improve future net interest rate margin.

Loans receivable, net, increased $37.5 million, or 0.5%, to $7.9 billion at December 31, 2024 from $7.8 billion at December 31, 2023. Multifamily loans, construction loans, and commercial business loans increased $51.5 million, $30.5 million, and $89.0 million, respectively, partially offset by decreases in one-to-four family real estate loans, commercial real estate loans and home equity loans and advances of $81.9 million, $37.2 million and $7.6 million, respectively. The allowance for credit losses for loans increased $4.9 million to $60.0 million at December 31, 2024 from $55.1 million at December 31, 2023. During the year ended December 31, 2024, the increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors.

Federal Home Loan Bank stock decreased $20.6 million, or 25.5%, to $60.4 million at December 31, 2024 from $81.0 million at December 31, 2023. The decrease was due to the redemption of stock required upon repaying FHLB borrowings.

Other assets increased $15.6 million, or 5.1%, to $324.0 million at December 31, 2024 from $308.4 million at December 31, 2023, primarily due to a $14.3 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations.

Total liabilities decreased $210.1 million, or 2.2%, to $9.4 billion at December 31, 2024 from $9.6 billion at December 31, 2023. The decrease was primarily attributable to a decrease in borrowings of $448.1 million, or 29.3%, partially offset by an increase in total deposits of $249.6 million, or 3.2%. The $448.1 million decrease in borrowings was primarily driven by a net decrease in long-term borrowings of $170.0 million, coupled with a decrease in short-term borrowings of $237.8 million. The decrease in long-term borrowings was mainly attributable to the prepayment of $170.0 million of long-term borrowings as part of the balance sheet repositioning transaction as described above. The increase in total deposits primarily consisted of increases in non-interest-bearing and interest-bearing demand deposits and certificates of deposit of $669,000, $54.8 million, and $255.8 million, respectively, partially offset by decreases in money market and savings and club accounts of $13.8 million and $47.8 million, respectively.

Total stockholders’ equity increased $40.0 million, or 3.8%, to $1.1 billion at December 31, 2024 from $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to the recognition of $8.0 million in stock based compensation expense and an increase of $48.2 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes. These increases were partially offset by a net loss of $11.7 million, and the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

Asset Quality

The Company’s non-performing loans at December 31, 2024 totaled $21.7 million, or 0.28% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $9.1 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $3.3 million and an increase in non-performing one-to-four family real estate loans of $5.6 million. The increase in non-performing commercial business loans primarily consists of two loans totaling $6.4 million at December 31, 2024, partially offset by the charge-off of a $3.7 million loan to a technology company during 2024. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 32 loans at December 31, 2024. Non-performing assets as a percentage of total assets totaled 0.22% at December 31, 2024 as compared to 0.12% at December 31, 2023.

For the quarter ended December 31, 2024, net charge-offs totaled $1.4 million, as compared to $173,000 in net charge-offs recorded for the quarter ended December 31, 2023. For the year ended December 31, 2024, net charge-offs totaled $9.6 million, as compared to $2.5 million in net charge-offs recorded for the year ended December 31, 2023. Net charge-offs for the year ended December 31, 2024 included charge-offs related to 17 commercial business loans totaling $9.2 million. Recoveries on previously charged-off loans for the quarter ended December 31, 2024, and the year ended December 31, 2024, totaled approximately $88,000 and $1.4 million, respectively.

The Company’s allowance for credit losses on loans was $60.0 million, or 0.76% of total gross loans, at December 31, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 69 branches. With over 215,000 accounts, the average deposit account balance was approximately $38,000 at December 31, 2024.

Deposit balances are summarized as follows:

	At December 31, 2024				At September 30, 2024
	Balance		Weighted Average Rate		Balance		Weighted Average Rate
	(Dollars in thousands)

Non-interest-bearing demand	$	1,438,030	—	%	$	1,406,152	—	%
Interest-bearing demand		2,021,312	2.19			1,980,298	2.41
Money market accounts		1,241,691	2.82			1,239,204	2.92
Savings and club deposits		652,501	0.75			649,858	0.79
Certificates of deposit		2,742,615	4.24			2,682,547	4.45
Total deposits	$	8,096,149	2.47	%	$	7,958,059	2.62	%

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at December 31, 2024. As of December 31, 2024, the Company had immediate access to approximately $2.7 billion of funding, with additional unpledged loan collateral available to pledge is approximately $2.1 billion.

At December 31, 2024, the Company’s non-performing commercial real estate loans totaled $2.9 million, or 0.04%, of the total loans receivable loan portfolio balance.

The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

	At December 31, 2024
	(Dollars in thousands)
	Balance		% of Gross Loans		Weighted Average Loan to Value Ratio		Weighted Average Debt Service Coverage
Multifamily Real Estate	$	1,460,641	18.4	%	58.0	%	1.59	x

Owner Occupied Commercial Real Estate	$	688,341	8.7	%	53.3	%	2.22	x

Investor Owned Commercial Real Estate:
Retail / Shopping centers	$	506,544	6.4	%	51.6	%	1.50	x
Mixed Use		214,148	2.7		57.3		1.58
Industrial / Warehouse		383,585	4.8		54.7		1.69
Non-Medical Office		193,569	2.4		50.8		1.65
Medical Office		120,381	1.5		58.5		1.46
Single Purpose		96,907	1.2		52.3		3.13
Other		136,408	1.7		47.8		1.76
Total	$	1,651,542	20.9	%	53.2	%	1.69

Total Multifamily and Commercial Real Estate Loans	$	3,800,524	48.0	%	55.1	%	1.75	x

At December 31, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

Annual Meeting of Stockholders

On January 28, 2025, the Company also announced that its annual meeting of stockholders will be held on June 5, 2025.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

Forward-Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands)

	December 31,
		2024		2023
Assets	(Unaudited)
Cash and due from banks	$	289,113	$	423,140
Short-term investments		110		109
Total cash and cash equivalents		289,223		423,249

Debt securities available for sale, at fair value		1,025,946		1,093,557
Debt securities held to maturity, at amortized cost (fair value of $350,153, and $357,177 at December 31, 2024 and 2023, respectively)		392,840		401,154
Equity securities, at fair value		6,673		4,079
Federal Home Loan Bank stock		60,387		81,022

Loans receivable		7,916,928		7,874,537
Less: allowance for credit losses		59,958		55,096
Loans receivable, net		7,856,970		7,819,441

Accrued interest receivable		40,383		39,345
Office properties and equipment, net		81,772		83,577
Bank-owned life insurance		274,908		268,362
Goodwill and intangible assets		121,008		123,350
Other real estate owned		1,334		—
Other assets		324,049		308,432
Total assets	$	10,475,493	$	10,645,568

Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	8,096,149	$	7,846,556
Borrowings		1,080,600		1,528,695
Advance payments by borrowers for taxes and insurance		45,453		43,509
Accrued expenses and other liabilities		172,915		186,473
Total liabilities		9,395,117		9,605,233

Stockholders’ equity:
Total stockholders’ equity		1,080,376		1,040,335
Total liabilities and stockholders’ equity	$	10,475,493	$	10,645,568

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)

	Three Months Ended December 31,					Year Ended December 31,
		2024			2023		2024			2023
Interest income:	(Unaudited)					(Unaudited)
Loans receivable	$	96,202		$	91,744	$	382,266		$	343,770
Debt securities available for sale and equity securities		9,793			7,077		36,411			28,120
Debt securities held to maturity		2,479			2,370		9,966			9,708
Federal funds and interest-earning deposits		3,309			4,828		15,181			8,188
Federal Home Loan Bank stock dividends		1,843			1,531		7,602			5,192
Total interest income		113,626			107,550		451,426			394,978
Interest expense:
Deposits		51,943			43,429		202,383			125,162
Borrowings		15,256			18,782		71,061			63,940
Total interest expense		67,199			62,211		273,444			189,102

Net interest income		46,427			45,339		177,982			205,876

Provision for credit losses		2,876			1,155		14,451			4,787

Net interest income after provision for credit losses		43,551			44,184		163,531			201,089

Non-interest income:
Demand deposit account fees		1,809			1,330		6,507			5,145
Bank-owned life insurance		2,066			4,456		7,319			10,126
Title insurance fees		570			560		2,505			2,400
Loan fees and service charges		1,193			1,144		4,483			4,510
Loss on securities transactions		(34,595	)		—		(35,851	)		(10,847	)
Change in fair value of equity securities		2,169			446		2,594			695
Gain on sale of loans		81			154		906			1,214
Other non-interest income		2,991			3,159		13,431			14,136
Total non-interest income		(23,716	)		11,249		1,894			27,379

Non-interest expense:
Compensation and employee benefits		26,579			28,463		109,489			120,846
Occupancy		5,861			5,590		23,482			22,927
Federal deposit insurance premiums		1,829			5,015		7,581			8,639
Advertising		457			498		2,510			2,805
Professional fees		2,567			3,083		14,164			9,824
Data processing and software expenses		3,572			4,154		15,578			15,039
Merger-related expenses		928			326		1,665			606
Loss on extinguishment of debt		3,447			300		3,447			300
Other non-interest expense		1,356			570		3,419			1,431
Total non-interest expense		46,596			47,999		181,335			182,417

(Loss) income before income tax (benefit) expense		(26,761	)		7,434		(15,910	)		46,051

Income tax (benefit) expense		(5,538	)		865		(4,257	)		9,965

Net (loss) income	$	(21,223	)	$	6,569	$	(11,653	)	$	36,086

(Loss) earnings per share-basic	$	(0.21	)	$	0.06	$	(0.11	)	$	0.35
(Loss) earnings per share-diluted	$	(0.21	)	$	0.06	$	(0.11	)	$	0.35
Weighted average shares outstanding-basic		101,686,108			101,656,890		101,676,758			102,656,388
Weighted average shares outstanding-diluted		101,945,750			101,817,194		101,839,507			102,894,969

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields

	For the Three Months Ended December 31,
		2024							2023
	Average Balance			Interest and Dividends		Yield / Cost		Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,839,416		$	96,202	4.88	%	$	7,816,272		$	91,744	4.66	%
Securities		1,635,028			12,272	2.99	%		1,453,863			9,447	2.58	%
Other interest-earning assets		341,393			5,152	6.00	%		447,369			6,359	5.64	%
Total interest-earning assets		9,815,837			113,626	4.61	%		9,717,504			107,550	4.39	%
Non-interest-earning assets		874,522							854,857
Total assets	$	10,690,359						$	10,572,361

Interest-bearing liabilities:
Interest-bearing demand	$	2,027,003		$	13,686	2.69	%	$	2,000,406		$	12,308	2.44	%
Money market accounts		1,235,421			7,630	2.46	%		1,119,290			8,962	3.18	%
Savings and club deposits		649,686			1,209	0.74	%		714,664			846	0.47	%
Certificates of deposit		2,696,740			29,418	4.34	%		2,416,773			21,313	3.50	%
Total interest-bearing deposits		6,608,850			51,943	3.13	%		6,251,133			43,429	2.76	%
FHLB advances		1,298,686			15,102	4.63	%		1,494,794			18,592	4.93	%
Notes payable		—			—	—	%		916			23	9.96	%
Junior subordinated debentures		7,036			154	8.71	%		7,013			167	9.45	%
Total borrowings		1,305,722			15,256	4.65	%		1,502,723			18,782	4.96	%
Total interest-bearing liabilities		7,914,572		$	67,199	3.38	%		7,753,856		$	62,211	3.18	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,460,125							1,441,005
Other non-interest-bearing liabilities		241,582							247,545
Total liabilities		9,616,279							9,442,406
Total stockholders’ equity		1,074,080							1,129,955
Total liabilities and stockholders’ equity	$	10,690,359						$	10,572,361

Net interest income				$	46,427						$	45,339
Interest rate spread						1.23	%						1.21	%
Net interest-earning assets	$	1,901,265						$	1,963,648
Net interest margin						1.88	%						1.85	%
Ratio of interest-earning assets to interest-bearing liabilities		124.02	%						125.32	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields

	For the Years Ended December 31,
		2024							2023
	Average Balance			Interest and Dividends		Yield / Cost		Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,801,939		$	382,266	4.90	%	$	7,748,096		$	343,770	4.44	%
Securities		1,622,519			46,377	2.86	%		1,540,726			37,828	2.46	%
Other interest-earning assets		363,370			22,783	6.27	%		241,520			13,380	5.54	%
Total interest-earning assets		9,787,828		$	451,426	4.61	%		9,530,342		$	394,978	4.14	%
Non-interest-earning assets		865,684							840,215
Total assets	$	10,653,512						$	10,370,557

Interest-bearing liabilities:
Interest-bearing demand	$	1,986,215		$	55,360	2.79	%	$	2,183,333		$	37,774	1.73	%
Money market accounts		1,235,495			32,977	2.67	%		951,174			24,296	2.55	%
Savings and club deposits		667,836			5,130	0.77	%		793,303			2,231	0.28	%
Certificates of deposit		2,587,360			108,916	4.21	%		2,229,042			60,861	2.73	%
Total interest-bearing deposits		6,476,906			202,383	3.12	%		6,156,852			125,162	2.03	%
FHLB advances		1,454,674			70,418	4.84	%		1,315,401			62,398	4.74	%
Notes payable		—			—	—	%		22,780			918	4.03	%
Junior subordinated debentures		7,023			640	9.11	%		7,054			624	8.85	%
Other borrowings		55			3	5.45	%		—			—	—	%
Total borrowings		1,461,752			71,061	4.86	%		1,345,235			63,940	4.75	%
Total interest-bearing liabilities		7,938,658		$	273,444	3.44	%		7,502,087		$	189,102	2.52	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,420,104							1,539,354
Other non-interest-bearing liabilities		242,290							231,018
Total liabilities		9,601,052							9,272,459
Total stockholders’ equity		1,052,460							1,098,098
Total liabilities and stockholders’ equity	$	10,653,512						$	10,370,557

Net interest income				$	177,982						$	205,876
Interest rate spread						1.17	%						1.62	%
Net interest-earning assets	$	1,849,170						$	2,028,255
Net interest margin						1.82	%						2.16	%
Ratio of interest-earning assets to interest-bearing liabilities		123.29	%						127.04	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Components of Net Interest Rate Spread and Margin

	Average Yields/Costs by Quarter
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Yield on interest-earning assets:
Loans	4.88	%	5.00	%	4.93	%	4.79	%	4.66	%
Securities	2.99		2.90		2.89		2.65		2.58
Other interest-earning assets	6.00		6.72		6.30		6.06		5.64
Total interest-earning assets	4.61	%	4.70	%	4.64	%	4.50	%	4.39	%

Cost of interest-bearing liabilities:
Total interest-bearing deposits	3.13	%	3.21	%	3.14	%	3.02	%	2.76	%
Total borrowings	4.65		4.87		4.92		4.98		4.96
Total interest-earning liabilities	3.38	%	3.52	%	3.49	%	3.38	%	3.18	%

Interest rate spread	1.23	%	1.18	%	1.15	%	1.12	%	1.21	%
Net interest margin	1.88	%	1.84	%	1.81	%	1.75	%	1.85	%

Ratio of interest-earning assets to interest-bearing liabilities	124.02	%	123.06	%	123.03	%	123.06	%	125.32	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights

	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023

SELECTED FINANCIAL RATIOS⁽¹⁾:
Return on average assets	(0.79	)%	0.23	%	0.17	%	(0.04	)%	0.25	%
Core return on average assets	0.42	%	0.23	%	0.20	%	0.02	%	0.38	%
Return on average equity	(7.86	)%	2.32	%	1.77	%	(0.45	)%	2.31	%
Core return on average equity	4.09	%	2.29	%	2.06	%	0.18	%	3.56	%
Core return on average tangible equity	4.74	%	2.58	%	2.34	%	0.20	%	3.99	%
Interest rate spread	1.23	%	1.18	%	1.15	%	1.12	%	1.21	%
Net interest margin	1.88	%	1.84	%	1.81	%	1.75	%	1.85	%
Non-interest income to average assets	(0.88	)%	0.33	%	0.35	%	0.28	%	0.42	%
Non-interest expense to average assets	1.73	%	1.60	%	1.74	%	1.74	%	1.80	%
Efficiency ratio	205.17	%	78.95	%	86.83	%	91.96	%	84.82	%
Core efficiency ratio	73.68	%	79.14	%	85.34	%	88.39	%	76.93	%
Average interest-earning assets to average interest-bearing liabilities	124.02	%	123.06	%	123.03	%	123.06	%	125.32	%
Net charge-offs to average outstanding loans	0.07	%	0.14	%	0.03	%	0.26	%	0.01	%

^{(1) Ratios are annualized when appropriate.}

ASSET QUALITY:
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Dollars in thousands)

Non-accrual loans	$	21,701		$	28,014		$	25,281		$	22,935		$	12,618
90+ and still accruing		—			—			—			—			—
Non-performing loans		21,701			28,014			25,281			22,935			12,618
Real estate owned		1,334			1,974			1,974			—			—
Total non-performing assets	$	23,035		$	29,988		$	27,255		$	22,935		$	12,618

Non-performing loans to total gross loans		0.28	%		0.36	%		0.33	%		0.30	%		0.16	%
Non-performing assets to total assets		0.22	%		0.28	%		0.25	%		0.22	%		0.12	%
Allowance for credit losses on loans (“ACL”)	$	59,958		$	58,495		$	57,062		$	55,401		$	55,096
ACL to total non-performing loans		276.29	%		208.81	%		225.71	%		241.56	%		436.65	%
ACL to gross loans		0.76	%		0.75	%		0.73	%		0.71	%		0.70	%

LOAN DATA:
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(In thousands)
Real estate loans:
One-to-four family	$	2,710,937		$	2,737,190		$	2,764,177		$	2,778,932		$	2,792,833
Multifamily		1,460,641			1,399,000			1,409,316			1,429,369			1,409,187
Commercial real estate		2,339,883			2,312,759			2,316,252			2,318,178			2,377,077
Construction		473,573			510,439			462,880			437,566			443,094
Commercial business loans		622,000			586,447			554,768			538,260			533,041
Consumer loans:
Home equity loans and advances		259,009			261,041			260,427			260,786			266,632
Other consumer loans		3,404			2,877			2,689			2,601			2,801
Total gross loans		7,869,447			7,809,753			7,770,509			7,765,692			7,824,665
Purchased credit deteriorated loans		11,686			11,795			12,150			14,945			15,089
Net deferred loan costs, fees and purchased premiums and discounts		35,795			35,642			36,352			34,992			34,783
Allowance for credit losses		(59,958	)		(58,495	)		(57,062	)		(55,401	)		(55,096	)
Loans receivable, net	$	7,856,970		$	7,798,695		$	7,761,949		$	7,760,228		$	7,819,441

CAPITAL RATIOS:
	December 31,
	2024⁽¹⁾		2023
Company:
Total capital (to risk-weighted assets)	14.20	%	14.08	%
Tier 1 capital (to risk-weighted assets)	13.40	%	13.32	%
Common equity tier 1 capital (to risk-weighted assets)	13.31	%	13.23	%
Tier 1 capital (to adjusted total assets)	10.02	%	10.04	%

Columbia Bank:
Total capital (to risk-weighted assets)	14.41	%	14.02	%
Tier 1 capital (to risk-weighted assets)	13.56	%	13.22	%
Common equity tier 1 capital (to risk-weighted assets)	13.56	%	13.22	%
Tier 1 capital (to adjusted total assets)	9.64	%	9.48	%

^{(1) Estimated ratios at December 31, 2024.}

Reconciliation of GAAP to Non-GAAP Financial Measures

Book and Tangible Book Value per Share
	December 31,
		2024			2023
	(Dollars in thousands)
Total stockholders’ equity	$	1,080,376		$	1,040,335
Less: goodwill		(110,715	)		(110,715	)
Less: core deposit intangible		(8,964	)		(11,155	)
Total tangible stockholders’ equity	$	960,697		$	918,465

Shares outstanding		104,759,185			104,918,905

Book value per share	$	10.31		$	9.92
Tangible book value per share	$	9.17		$	8.75

Reconciliation of Core Net Income
	Three Months Ended December 31,					Years Ended December 31,
		2024			2023		2024			2023
	(In thousands)
Net (loss) income	$	(21,223	)	$	6,569	$	(11,653	)	$	36,086
Add: loss on securities transactions, net of tax		28,952			—		30,082			9,249
Add: FDIC special assessment, net of tax		—			3,009		385			3,009
Add: severance expense from reduction in workforce, net of tax		—			—		67			1,390
Add: merger-related expenses, net of tax		777			288		1,468			529
Add: loss on extinguishment of debt, net of tax		2,885			265		2,885			265
Add: litigation expenses, net of tax		—			—		—			262
Core net income	$	11,391		$	10,131	$	23,234		$	50,790

Return on Average Assets
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Net (loss) income	$	(21,223	)	$	6,569		$	(11,653	)	$	36,086

Average assets	$	10,690,359		$	10,572,361		$	10,653,512		$	10,370,557

Return on average assets		(0.79	)%		0.25	%		(0.11	)%		0.35	%

Core net income	$	11,391		$	10,131		$	23,234		$	50,790

Core return on average assets		0.42	%		0.38	%		0.22	%		0.49	%

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Return on Average Equity
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Total average stockholders’ equity	$	1,074,080		$	1,129,955		$	1,052,460		$	1,098,098
Add: loss on securities transactions, net of tax		28,952			—			30,082			9,249
Add: FDIC special assessment, net of tax		—			3,009			385			3,009
Add: severance expense from reduction in workforce, net of tax		—			—			67			1,390
Add: merger-related expenses, net of tax		777			288			1,468			529
Add: loss on extinguishment of debt, net of tax		2,885			265			2,885			265
Add: litigation expenses, net of tax		—			—			—			262
Core average stockholders’ equity	$	1,106,694		$	1,133,517		$	1,087,347		$	1,112,802

Return on average equity		(7.86	)%		2.31	%		(1.11	)%		3.29	%

Core return on core average equity		4.09	%		3.56	%		2.14	%		4.56	%

Return on Average Tangible Equity
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Total average stockholders’ equity	$	1,074,080		$	1,129,955		$	1,052,460		$	1,098,098
Less: average goodwill		(110,715	)		(110,715	)		(110,715	)		(110,715	)
Less: average core deposit intangible		(9,311	)		(11,524	)		(10,119	)		(12,398	)
Total average tangible stockholders’ equity	$	954,054		$	1,007,716		$	931,626		$	974,985

Core return on average tangible equity		4.74	%		3.99	%		2.49	%		5.21	%

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Efficiency Ratios
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Net interest income	$	46,427		$	45,339		$	177,982		$	205,876
Non-interest income		(23,716	)		11,249			1,894			27,379
Total income	$	22,711		$	56,588		$	179,876		$	233,255

Non-interest expense	$	46,596		$	47,999		$	181,335		$	182,417

Efficiency ratio		205.17	%		84.82	%		100.81	%		78.20	%

Non-interest income	$	(23,716	)	$	11,249		$	1,894		$	27,379
Add: loss on securities transactions		34,595			—			35,851			10,847
Core non-interest income	$	10,879		$	11,249		$	37,745		$	38,226

Non-interest expense	$	46,596		$	47,999		$	181,335		$	182,417
Less: FDIC special assessment		—			(3,840	)		(439	)		(3,840	)
Less: severance expense from reduction in workforce		—			—			(74	)		(1,605	)
Less: merger-related expenses		(928	)		(326	)		(1,665	)		(606	)
Less: loss on extinguishment of debt		(3,447	)		(300	)		(3,447	)		(300	)
Less: litigation expenses		—			—			—			(317	)
Core non-interest expense	$	42,221		$	43,533		$	175,710		$	175,749

Core efficiency ratio		73.68	%		76.93	%		81.45	%		72.00	%

Columbia Financial, Inc.
Investor Relations Department
(833) 550-0717

The MIL Network –

January 29, 2025

MIL-OSI: Synaptics Accelerates Edge AI Strategy with New Broadcom Agreement

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Synaptics^® Incorporated (Nasdaq: SYNA) announced it has accelerated its Edge AI strategy by signing a definitive licensing agreement with Broadcom that includes Wi-Fi^® 8, ultra-wideband (UWB), Wi-Fi 7, advanced Bluetooth^®, and next-generation GPS/GNSS products and technology for IoT and Android™ ecosystem.

Strategic benefits:

Accelerates Edge AI strategy: Solidifies Synaptics’ leadership position for end-to-end AI Internet of Things (IoT) connectivity and expands our ability to service the Android™ ecosystem.

Solidifies Synaptics’ Veros™ wireless product roadmap for next 5+ years: Adds Wi-Fi 8 combo, UWB, GPS/GNSS, as well as Wi-Fi 7 combo products.

Increases addressable market: Expands serviceable wireless market to include augmented and virtual reality (AR/VR) platforms, Android™ smartphones, and consumer audio.

Strengthens wireless team: Establishes one of the largest and most highly qualified teams in cutting-edge wireless research and development.

Accretive to financials: Expected to add $40+ million in annualized sales and to be immediately accretive to non-GAAP EPS.

“Our wireless technology and capabilities are cornerstones of our success in IoT markets,” said Michael Hurlston, President and CEO of Synaptics. “We are now developing this expertise to enable ecosystems with centralized control and seamless connectivity to a rapidly growing array of Edge AI devices. Our platform history, proven track record, and strategy uniquely position us to integrate Broadcom’s technology and fully deliver on the potential of IoT connectivity.”

Key technology focus and growth:

Wi-Fi 8: Reinforces and builds on Synaptics’ field-proven Wi-Fi/Bluetooth combo solutions for the IoT, including Wi-Fi 7. The rapid incorporation of Wi-Fi 8 gives us first-mover advantage in new markets such as automotive and positions Synaptics among the leaders deploying this technology for AR/VR and Android™ smartphones.
UWB: Allows Synaptics to participate in a growing market for precise location tracking and complements our market-leading Wi-Fi combo connectivity.
GPS/GNSS: Synaptics is already among the leaders in GPS/GNSS for the IoT. The widely acclaimed SYN4778 is a prime example. Next-generation devices will build upon this success through lower power, greater accuracy, reduced system-level cost and complexity, and more functionality. These enhancements will allow Synaptics to further penetrate markets such as wearables, navigation devices, and asset trackers.

The all-cash transaction is expected to close on January 30, 2025.

Synaptics will provide further details on the transaction at its scheduled fiscal Q2 2025 investor conference call on February 6^th, 2025.

About Synaptics Incorporated
Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is the force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, X, and Facebook, or visit www.synaptics.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that the Company or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations or various assumptions. Our expectations and assumptions are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to our ability to consummate and realize anticipated benefits from the transaction and our ability to grow sales and expand into the serviceable wireless market as expected, and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of our most recent Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in our Securities and Exchange Commission reports. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.
For further information, please contact:

Investor Relations
Munjal Shah
Synaptics
+1-408-518-7639
munjal.shah@synaptics.com

Media Contact
Patrick Mannion
Synaptics
+1-631-678-1015
patrick.mannion@synaptics.com

The MIL Network –

January 29, 2025

MIL-OSI: CNB Financial Corporation Reports Fourth Quarter and Full-Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

CLEARFIELD, Pa., Jan. 28, 2025 (GLOBE NEWSWIRE) — CNB Financial Corporation (“Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the three and twelve months ended December 31, 2024.

Executive Summary

Net income available to common shareholders (“earnings”) was $14.0 million, or $0.66 per diluted share, for the three months ended December 31, 2024, compared to earnings of $12.9 million, or $0.61 per diluted share, for the three months ended September 30, 2024. The quarterly increase was a result of an increase in net interest income combined with a reduction in non-interest expense, partially offset by a decrease in non-interest income, as discussed in more detail below. The increase in fourth quarter 2024 earnings and diluted earnings per share when compared to earnings of $12.9 million, or $0.62 per diluted share, in the quarter ended December 31, 2023 was primarily due to increases in both net interest income and non-interest income, coupled with a decrease in non-interest expense, partially offset by an increase in the provision for credit losses.
Earnings were $50.3 million, or $2.39 per diluted share, for the twelve months ended December 31, 2024, compared to earnings of $53.7 million, or $2.55 per diluted share, for the twelve months ended December 31, 2023. The decrease in earnings and diluted earnings per share comparing the twelve months ended December 31, 2024 to the twelve months ended December 31, 2023 was primarily due to the rise in deposit costs year over year, as discussed in more detail below.
At December 31, 2024, loans totaled $4.5 billion excluding the balances of syndicated loans. This adjusted total of $4.5 billion in loans represented a quarterly increase of $6.6 million, or 0.15% (0.58% annualized), compared to the same adjusted total loans measured as of September 30, 2024, and a year-over-year increase of $169.4 million, or 3.88%, compared to the same adjusted total loans measured as of December 31, 2023. The increase in loans for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 was primarily driven by commercial and residential real estate growth across our regions, including growth in CNB’s Private Banking division. This growth was partially offset by a larger volume of loan payoffs during the quarter. The year-over-year growth in loans as of December 31, 2024 compared to loans as of December 31, 2023 resulted primarily from growth in commercial and residential real estate loans in the Corporation’s more recent expansion markets of Cleveland, OH and Roanoke, VA. Additional growth occurred in commercial and residential real estate loans in the Columbus, OH market, commercial industrial loans in the Erie, PA market, and residential real estate loans in CNB Bank’s Private Banking division.
- At December 31, 2024, the Corporation’s balance sheet reflected an increase in syndicated lending balances of $10.4 million compared to September 30, 2024. The increase in syndicated lending balances was the result of the Corporation identifying loans with the combination of meeting the Corporation’s traditionally disciplined high credit quality standards, and with favorable yields versus investment alternatives. Year over year, the Corporation’s balance sheet reported a decrease in syndicated lending balances of $28.8 million compared to December 31, 2023, resulting from scheduled paydowns or early payoffs of certain syndicated loans. The syndicated loan portfolio totaled $79.9 million, or 1.73% of total loans, at December 31, 2024, compared to $69.5 million, or 1.51% of total loans, at September 30, 2024 and $108.7 million, or 2.43% of total loans, at December 31, 2023. The Corporation closely manages the level and composition of its syndicated loan portfolio to ensure it continues to provide a high credit quality, profitable use of excess liquidity to complement the Corporation’s loan growth from its in-market customer relationships.
At December 31, 2024, total deposits were $5.4 billion, reflecting a quarterly increase of $154.4 million, or 2.96% (11.78% annualized), compared to September 30, 2024, and a year-over-year increase of $372.6 million, or 7.45%, compared to total deposits measured as of December 31, 2023. The increase in deposit balances compared to September 30, 2024 was primarily attributable to an increase in retail and business savings and retail time deposits. Additional deposit and liquidity profile details were as follows:
- At December 31, 2024, the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 27.71% of total CNB Bank deposits. However, when excluding $101.9 million of affiliate company deposits and $429.0 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $986.0 million, or approximately 18.01% of total CNB Bank deposits as of December 31, 2024.
  - The level of adjusted uninsured deposits at December 31, 2024 was relatively unchanged compared to the level at September 30, 2024, when the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 28.50% of total CNB Bank deposits. Excluding $103.1 million of affiliate company deposits and $462.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $950.6 million, or approximately 17.87% of total CNB Bank deposits as of September 30, 2024.
- At December 31, 2024, the average deposit balance per account for CNB Bank was approximately $34 thousand, which has remained consistently at this level for an extended period. CNB Bank has experienced increases in the volume of business deposits, as well as retail customer household deposits, including those that continue to be added after the 2023 launches of (i) CNB Bank’s “At Ease” account, a service for U.S. service member and veteran families, and (ii) CNB Bank’s women-focused banking division, Impressia Bank.
- At December 31, 2024, the Corporation had $375.0 million of cash equivalents held in CNB Bank’s interest-bearing deposit account at the Federal Reserve. These excess funds, when combined with collective contingent liquidity resources of $4.6 billion including (i) available borrowing capacity from the Federal Home Bank of Pittsburgh (“FHLB”) and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, resulted in the total on-hand and contingent liquidity sources for the Corporation as of December 31, 2024 to be approximately 5.0 times the estimated amount of adjusted uninsured deposit balances discussed above.
At December 31, 2024, September 30, 2024 and December 31, 2023, the Corporation had no outstanding short-term borrowings from the FHLB or the Federal Reserve’s Discount Window.
At December 31, 2024, the Corporation’s pre-tax net unrealized losses on available-for-sale and held-to-maturity securities totaled $74.8 million, or 12.25% of total shareholders’ equity, compared to $62.5 million, or 10.30% of total shareholders’ equity, at September 30, 2024 and $82.2 million, or 14.40% of total shareholders’ equity, at December 31, 2023. The change in unrealized losses during the fourth quarter 2024 was primarily due to changes in the yield curve compared to the third quarter of 2024, coupled with the Corporation’s scheduled bond maturities, which were all realized at par. Importantly, all regulatory capital ratios for the Corporation would still exceed regulatory “well-capitalized” levels as of December 31, 2024, September 30, 2024, and December 31, 2023 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation maintained approximately $100.7 million of liquid funds at its holding company, which more than covers the $74.8 million in unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to CNB Bank, if necessary.
Total nonperforming assets were approximately $59.5 million, or 0.96% of total assets, as of December 31, 2024, compared to $42.0 million, or 0.70% of total assets, as of September 30, 2024, and $31.8 million, or 0.55% of total assets, as of December 31, 2023. The increase in nonperforming assets for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was primarily due to one commercial multifamily relationship totaling $20.4 million with a specific reserve balance of $885 thousand. Management does not believe there is a risk of significant additional loss exposure beyond the specific reserves related to this loan relationship and is actively working with the borrower and their real estate broker to facilitate the sale of the property. The increase in non-performing assets at December 31, 2024 compared to December 31, 2023 was due to the loan relationship discussed above, as well as certain commercial and industrial and owner-occupied commercial real estate relationships as previously disclosed in the second quarter of 2024 and a commercial relationship (consisting of various loan types) in the third quarter of 2024. For the three months ended December 31, 2024, net loan charge-offs were $2.1 million, or 0.19% (annualized) of average total loans and loans held for sale, compared to $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2024, and $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended December 31, 2023. The increase in net loan charge-offs during the quarter ended December 31, 2024 was primarily related to (i) an owner-occupied commercial real estate relationship with a charge-off of $750 thousand (remaining balance of approximately $3.8 million with specific reserves of $1.4 million), and (ii) a nonowner-occupied commercial real estate relationship for $625 thousand (no remaining balance).
Pre-provision net revenue (“PPNR”), a non-GAAP measure, was $21.6 million for the three months ended December 31, 2024, compared to $19.7 million and $18.4 million for the three months ended September 30, 2024 and December 31, 2023, respectively.¹ The fourth quarter 2024 PPNR, when compared to the third quarter of 2024, reflected increases in net interest income and reductions in non-interest expense, partially offset by a reduction in quarterly non-interest income. The increase in PPNR for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 was primarily attributable to the increases in net interest income and non-interest income. PPNR was $76.6 million for the twelve months ended December 31, 2024 compared to $77.8 million for the twelve months ended December 31, 2023.¹ The decrease in PPNR for the twelve months ended December 31, 2024 compared to the twelve months ended December 31, 2023 was primarily attributable to the significant year-over-year increase in deposit costs, coupled with increases in certain personnel costs (primarily from new offices and personnel added in the recently added expansion markets of Cleveland, OH and Roanoke, VA). Also, the Corporation incurred additional technology expenses for the recently completed full implementation of certain franchise-wide business development and customer relationship management applications.

¹ This release contains references to certain financial measures that are not defined under U.S. Generally Accepted Accounting Principles (“GAAP”). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the “Reconciliation of Non-GAAP Financial Measures” section.

Commenting on the Corporation’s positive quarterly results, Michael Peduzzi, President and CEO of both the Corporation and CNB Bank, stated, “CNB’s performance for the fourth quarter of 2024 continued the favorable trend of increased earnings for each of the most recent three quarters. This favorable earnings trend is the result of a continued implementation of the fundamental strategic initiatives that we continue to focus on – deepening existing customer relationships while adding new clients in both interest-earning and fee-based activities, remaining committed to our traditionally disciplined loan and investment underwriting standards, employing risk-based and market-relevant loan and deposit pricing, and continuing solid risk measurement and management practices. While we remain confident in the continued growth and increasing profitability of our current multi-state core franchise, we are very excited by the prospect of expanding our business development model across all of our financial services, and realizing even greater back-office efficiencies of operating scale, with our recently announced plan to add over $2 billion in assets with our intended acquisition of ESSA Bancorp, Inc. (“ESSA Bancorp”) and its banking subsidiary, ESSA Bank & Trust, based primarily in northeastern Pennsylvania (collectively, “ESSA”).

With full consideration of the impact of the prospective merger and the additional skilled employees and resources from both internal leadership development efforts and the ESSA employee base, we remain intently focused on achieving qualitative growth across our commercial, retail, and wealth management activities, while controlling the growth in staffing levels and overhead costs. Our collective Board and employee team is committed to our core strategic principles, including a focus on delivering increasing profitable and desirable financial services, while striving to most effectively realize the accretive value of our prospective acquisition, for the mutually beneficial and sustainable success of our valued investors and growing client base across our expanding franchise.”

Other Balance Sheet Highlights

Book value per common share was $26.34 at December 31, 2024, reflecting an increase from $26.13 at September 30, 2024 and $24.57 at December 31, 2023. Tangible book value per common share, a non-GAAP measure, was $24.24 as of December 31, 2024, reflecting an increase of $0.21, or 3.48% (annualized) from $24.03 as of September 30, 2024 and a year-over-year increase of $1.78, or 7.93%, from $22.46 as of December 31, 2023.¹ The increases in book value per common share and tangible book value per common share from September 30, 2024 to December 31, 2024 were primarily due to a $10.2 million increase in retained earnings, partially offset by a $6.3 million increased in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the fourth quarter of 2024. The increases in book value per common share and tangible book value per common share from December 31, 2023 to December 31, 2024 were primarily due to (i) a $35.4 million increase in retained earnings over the twelve months ended December 31, 2024, (ii) the Corporation’s repurchase of 23,988 common shares at a weighted average price of $18.38 in the second quarter of 2024, and (iii) a $2.5 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months.

Loan Portfolio Profile

As part of its lending policy and risk management activities, the Corporation tracks lending exposure by industry classification and type to determine potential risks associated with industry concentrations, and if any concentration risk issues could lead to additional credit loss exposure. In the current post-pandemic and relatively inflationary economic environment, the Corporation has continued to evaluate its exposure to the office, hospitality, and multifamily industries within its commercial real estate portfolio. Even given the Corporation’s historically sound underwriting protocols and high credit quality standards for borrowers in the commercial real estate industry segments, the Corporation monitors numerous relevant sensitivity elements, including occupancy, loan-to-value, absorption and cap rates, debt service coverage and covenant compliance, and developer/lessor financial strength both in the project and globally. At December 31, 2024, the Corporation had the following key metrics related to its office, hospitality and multifamily portfolios:
- Commercial office loans:
  - There were 112 outstanding loans, totaling $113.7 million, or 2.47% of total Corporation loans outstanding;
  - There were no nonaccrual commercial office loans at December 31, 2024;
  - There were no past due commercial office loans at December 31, 2024; and
  - The average outstanding balance per commercial office loan was $1.0 million.
- Commercial hospitality loans:
  - There were 170 outstanding loans, totaling $321.6 million, or 6.98% of total Corporation loans outstanding;
  - There were no nonaccrual commercial hospitality loans at December 31, 2024;
  - There were no past due commercial hospitality loans at December 31, 2024; and
  - The average outstanding balance per commercial hospitality loan was $1.9 million.
- Commercial multifamily loans:
  - There were 225 outstanding loans, totaling $367.6 million, or 7.98% of total Corporation loans outstanding;
  - There were two nonaccrual commercial multifamily loan that totaled $20.7 million, or 5.62% of total multifamily loans outstanding. As previously discussed, one customer relationship did have a specific reserve of $885 thousand, while the other customer relationship did not have a related specific loss reserve at December 31, 2024;
  - There were three past due commercial multifamily loans that totaled $21.1 million, or 5.75% of total commercial multifamily loans outstanding at December 31, 2024; and
  - The average outstanding balance per commercial multifamily loan was $1.6 million.

The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be high volatility commercial real estate (“HVCRE”) credits.

Performance Ratios

Annualized return on average equity was 9.79% for the three months ended December 31, 2024, compared to 9.28% and 9.97% for the three months ended September 30, 2024 and December 31, 2023, respectively. Return on average equity was 9.21% for the twelve months ended December 31, 2024 compared to 10.54% for the twelve months ended December 31, 2023.
Annualized return on average tangible common equity, a non-GAAP measure, was 10.90% for the three months ended December 31, 2024, compared to 10.33% and 11.27% for the three months ended September 30, 2024 and December 31, 2023, respectively.¹ Return on average tangible common equity, a non-GAAP measure, was 10.25% for the twelve months ended December 31, 2024 compared to 11.98% for the twelve months ended December 31, 2023.¹
The Corporation’s efficiency ratio was 63.68% for the three months ended December 31, 2024, compared to 66.34% and 67.66% for the three months ended September 30, 2024 and December 31, 2023, respectively. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 63.02% for the three months ended December 31, 2024, compared to 65.58% and 66.93% for the three months ended September 30, 2024 and December 31, 2023, respectively.¹ The decrease for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was primarily driven by an increase in net interest income, coupled with lower non-interest expenses, primarily due to decreases in salaries and benefits, as discussed in more detail below.
The Corporation’s efficiency ratio was 66.20% for the twelve months ended December 31, 2024, compared to 65.13% for the twelve months ended December 31, 2023. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP ratio, was 65.47% for the twelve months ended December 31, 2024, compared to 64.45% the twelve months ended December 31, 2023.¹

Revenue

Total revenue (net interest income plus non-interest income) was $59.4 million for the three months ended December 31, 2024, an increase when compared to $58.5 million and $56.8 million for the three months ended September 30, 2024 and December 31, 2023, respectively.
- Net interest income was $49.0 million for the three months ended December 31, 2024, compared to $47.5 million and $47.7 million for the three months ended September 30, 2024 and December 31, 2023, respectively. When comparing the fourth quarter of 2024 to the third quarter of 2024, the increase in net interest income of $1.6 million, or 3.28% (13.05% annualized), was primarily driven by targeted interest-bearing deposit rate decreases as a result of the Federal Reserve rate decreases since mid-September 2024.
- Net interest margin was 3.44%, 3.43% and 3.54% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.43%, 3.42% and 3.51% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.¹
  - The yield on earning assets of 5.84% for the three months ended December 31, 2024 decreased 14 basis points from September 30, 2024 and increased 2 basis points from December 31, 2023. The decrease in yield compared to September 30, 2024 was attributable to the net impact of declining interest rates on floating-rate loans as a result of the Federal Reserve decreases to the Prime rate (upon which the majority of the Corporation’s floating rate loans are indexed).
  - The cost of interest-bearing liabilities of 3.03% for the three months ended December 31, 2024 decreased 18 basis points from September 30, 2024 and increased 14 basis points from December 31, 2023. When comparing the fourth quarter of 2024 to the third quarter of 2024, the decrease in the cost of interest-bearing liabilities is primarily the result of the Corporation’s targeted interest-bearing deposit rate decreases in response to the Federal Reserve rate decreases since mid-September 2024.
Total revenue was $226.6 million for the twelve months ended December 31, 2024 compared to $223.2 million for the twelve months ended December 31, 2023.
- Net interest income was $187.5 million for the twelve months ended December 31, 2024 compared to $189.8 million for the twelve months ended December 31, 2023. When comparing the twelve months ended December 31, 2024 to the twelve months ended December 31, 2023, the decrease in net interest income of $2.4 million, or 1.24%, was due to an increase in the Corporation’s interest expense, as a result of targeted interest-bearing deposit rate increases to ensure both deposit growth and retention, more than offsetting the interest income growth from both year-over-year loan growth and the impact of higher interest rates for much of the 2024 year resulting in greater income on loans, coupled with a higher average balance of earnings on excess liquidity maintained as interest-bearing deposits with the Federal Reserve.
- Net interest margin was 3.41% and 3.63% for the twelve months ended December 31, 2024 and 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.39% and 3.61% for the twelve months ended December 31, 2024 and 2023, respectively.¹
  - The yield on earning assets of 5.88% for the twelve months ended December 31, 2024 increased 31 basis points from the twelve months ended December 31, 2023. The increase in yield compared to December 31, 2023 was attributable to the net benefit of higher interest rates on both variable-rate loans and new loan production.
  - The cost of interest-bearing liabilities of 3.11% for the twelve months ended December 31, 2024 increased 62 basis points from the twelve months ended December 31, 2023 primarily as a result of the Corporation’s targeted interest-bearing deposit rate increases for deposit retention and growth initiatives given the competitive environment resulting from the numerous Federal Reserve rate hikes since the first quarter of 2022 that did not start to have some easing measures until late in 2024.
Total non-interest income was $10.3 million for the three months ended December 31, 2024 compared to $11.0 million and $9.1 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The three months ended December 31, 2024 included increases in net realized and unrealized losses on equity securities compared to the three months ended September 30, 2024. The increase in fourth quarter 2024 non-interest income compared to the three months ended December 31, 2023 was primarily due to increased wealth and asset management fees and higher pass-through income from small business investment companies (“SBICs”), partially offset by an increase in net realized and unrealized losses on equity securities.
Total non-interest income was $39.1 million for the twelve months ended December 31, 2024 compared to $33.3 million for the twelve months ended December 31, 2023. This increase was primarily due to higher pass-through income from SBICs coupled with an increase in net realized and unrealized gains on equity securities and an increase in wealth and asset management fees.

Non-Interest Expense

For the three months ended December 31, 2024 total non-interest expense was $37.8 million, compared to $38.8 million and $38.5 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The decrease of $979 thousand, or 2.52%, from the three months ended September 30, 2024, was primarily due to a decrease in salaries and benefits. The decrease in salaries and benefits resulted primarily from a decrease in incentive compensation accruals (which are based on various components of the Corporation’s financial performance for the year), coupled with the timing of retirement plan contribution accruals and lower supplemental executive retirement plan accruals with the departure of an executive during the fourth quarter, as previously disclosed. The $645 thousand decrease in non-interest expense compared to the three months ended December 31, 2023 was primarily due to lower salaries and benefits driven by reduced incentive compensation accruals, along with a decrease in quarterly advertising expense. These decreases were partially offset by higher card processing and interchange expenses resulting from fourth quarter 2023 accrual adjustments related to changes in the Corporation’s cardholder rewards program.
For the twelve months ended December 31, 2024 total non-interest expense was $150.0 million, compared to $145.3 million for the twelve months ended December 31, 2023. The increase of $4.7 million, or 3.21%, from the twelve months ended December 31, 2023 was primarily a result of an increase in salaries and benefits and technology expenses The increase in salaries and benefits was driven by an increase in personnel costs related to annual merit increases and growth in the Corporation’s staff and new offices in its expansion markets (Cleveland, OH and Roanoke, VA), while the increase in technology was primarily due to usage and licensing increases in year-over-year investments in applications aimed at enhancing both customer online banking capabilities, customer call center communications, and in-branch technology delivery channels.

Income Taxes

Income tax expense for the three months ended December 31, 2024 was $3.6 million, representing a 19.14% effective tax rate, compared to $3.3 million, representing an 19.31% effective tax rate, for the three months ended September 30, 2024 and $3.2 million, representing a 18.45% effective tax rate, for the three months ended December 31, 2023. Income tax expense for the twelve months ended December 31, 2024 was $12.8 million, representing an 18.98% effective tax rate compared to $13.8 million, representing a 19.22% effective tax rate, for the twelve months ended December 31, 2023.

Asset Quality

Based upon the addition of one larger nonaccrual loan relationship in the fourth quarter of 2024 as discussed above, total nonperforming assets were approximately $59.5 million, or 0.96% of total assets, as of December 31, 2024, compared to $42.0 million, or 0.70% of total assets, as of September 30, 2024, and $31.8 million, or 0.55% of total assets, as of December 31, 2023.
The allowance for credit losses measured as a percentage of total loans was 1.03% as of December 31, 2024 compared to 1.02% as of September 30, 2024 and 1.03% as of December 31, 2023. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 84.08% as of December 31, 2024, compared to 117.03% and 154.63% as of September 30, 2024 and December 31, 2023, respectively. The change in the allowance for credit losses as a percentage of nonaccrual loans was primarily attributable to the levels of nonperforming assets, as discussed above.
The provision for credit losses was $2.9 million for the three months ended December 31, 2024, compared to $2.4 million and $1.2 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The $549 thousand increase in the provision expense for the fourth quarter of 2024 compared to the third quarter of 2024 was primarily a result of increased net loan charge-offs in the fourth quarter of 2024. The $1.7 million increase in the provision expense for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was primarily due to both required provisioning to cover loan portfolio growth, and the increased net loan charge-offs in the fourth quarter of 2024 compared to the fourth quarter of 2023.
As discussed in more detail above, for the three months ended December 31, 2024, net loan charge-offs were $2.1 million, or 0.19% (annualized) of average total loans and loans held for sale, compared to $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2024, and $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended December 31, 2023.
For the twelve months ended December 31, 2024, net loan charge-offs were $7.5 million, or 0.17%, of average total loans and loans held for sale, compared to $3.4 million, or 0.08%, of average total loans and loans held for sale, during the twelve months ended December 31, 2023, with a couple of the larger charge-offs occurring in the first and second quarters of 2024, as previously disclosed in those periods.

Capital

As of December 31, 2024, the Corporation’s total shareholders’ equity was $610.7 million, representing an increase of $4.3 million, or 0.71% (2.84% annualized), from September 30, 2024 and an increase of $39.4 million, or 6.91%, from December 31, 2023. The changes resulted from an increase in the Corporation’s retained earnings (net income, partially offset by the common and preferred stock dividends paid) and a decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio. The additions to shareholders equity from retained earnings were also partially offset by the Corporation’s repurchase of some of its common stock.
Regulatory capital ratios for the Corporation continue to exceed regulatory “well-capitalized” levels as of December 31, 2024, consistent with prior periods.
As of December 31, 2024, the Corporation’s ratio of common shareholders’ equity to total assets was 8.93% compared to 9.12% at September 30, 2024 and 8.93% at December 31, 2023. As of December 31, 2024, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.28% compared to 8.45% at September 30, 2024 and 8.22% at December 31, 2023. The decrease in the December 31, 2024 ratio compared to September 30, 2024 was primarily the result of an increase in accumulated other comprehensive loss, partially offset by an increase in retained earnings, as discussed above.¹

Recent Events

On January 10, 2025, the Corporation announced that the Corporation and CNB Bank entered into a definitive merger agreement (the “Merger Agreement”) with ESSA in an all-stock transaction. Under the terms of the Merger Agreement, each outstanding share of ESSA Bancorp common stock will be converted into the right to receive 0.8547 shares of the Corporation’s common stock. The transaction is currently expected to close in the third quarter of 2025, subject to customary closing conditions, including the receipt of regulatory approvals, and approval by the shareholders of ESSA Bancorp and the Corporation.

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.2 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, one drive-up office, one mobile office, and 55 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Corporation’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Corporation’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; (ii) changes in interest rates; (iii) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (iv) effectiveness of our data security controls in the face of cyber attacks and any reputational risks following a cybersecurity incident; (v) changes in general business, industry or economic conditions or competition; (vi) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (vii) governmental approvals of the Corporation’s pending merger with ESSA may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; (viii) the Corporation’s shareholders and/or the shareholders of ESSA may fail to approve the merger; (ix) higher than expected costs or other difficulties related to integration of combined or merged businesses; (x) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (xi) changes in the quality or composition of our loan and investment portfolios; (xii) adequacy of loan loss reserves; (xiii) increased competition; (xiv) loss of certain key officers; (xv) deposit attrition; (xvi) rapidly changing technology; (xvii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xviii) changes in the cost of funds, demand for loan products or demand for financial services; and (xix) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on the Corporation’s financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. Factors or events that could cause the Corporation’s actual results to differ may emerge from time to time, and it is not possible for the Corporation to predict all of them. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Income Statement
Interest and fees on loans	$	74,164		$	75,725		$	73,014		$	293,544		$	273,223
Interest and dividends on securities and cash and cash equivalents		9,514			7,510			6,194			31,926			20,473
Interest expense		(34,634	)		(35,749	)		(31,514	)		(138,001	)		(103,867	)
Net interest income		49,044			47,486			47,694			187,469			189,829
Provision for credit losses		2,930			2,381			1,242			9,222			5,993
Net interest income after provision for credit losses		46,114			45,105			46,452			178,247			183,836
Non-interest income
Wealth and asset management fees		1,976			2,060			1,684			7,845			7,251
Service charges on deposit accounts		1,712			1,790			1,803			6,990			7,372
Other service charges and fees		770			796			727			2,973			3,010
Net realized gains (losses) on available-for-sale securities		83			(9	)		—			74			52
Net realized and unrealized gains (losses) on equity securities		(13	)		656			543			754			(387	)
Mortgage banking		93			197			160			673			676
Bank owned life insurance		784			775			734			3,110			2,945
Card processing and interchange income		2,222			2,241			2,082			8,666			8,301
Other non-interest income		2,694			2,467			1,404			8,029			4,115
Total non-interest income		10,321			10,973			9,137			39,114			33,335
Non-interest expenses
Salaries and benefits		18,501			19,572			19,200			74,536			71,062
Net occupancy expense of premises		3,816			3,701			3,719			14,737			14,509
Technology expense		5,743			5,417			5,525			21,805			20,202
Advertising expense		684			623			1,048			2,545			3,133
State and local taxes		1,090			1,256			1,018			4,726			4,126
Legal, professional, and examination fees		986			940			1,247			4,217			4,414
FDIC insurance premiums		864			846			978			3,718			3,879
Card processing and interchange expenses		1,325			1,193			756			4,575			5,025
Other non-interest expense		4,796			5,236			4,959			19,143			18,992
Total non-interest expenses		37,805			38,784			38,450			150,002			145,342
Income before income taxes		18,630			17,294			17,139			67,359			71,829
Income tax expense		3,566			3,340			3,162			12,784			13,809
Net income		15,064			13,954			13,977			54,575			58,020
Preferred stock dividends		1,076			1,076			1,076			4,302			4,302
Net income available to common shareholders	$	13,988		$	12,878		$	12,901		$	50,273		$	53,718

Ending shares outstanding		20,987,992			20,994,730			20,896,439			20,987,992			20,896,439
Average diluted common shares outstanding		20,929,885			20,911,862			20,841,528			20,900,037			20,944,376
Diluted earnings per common share	$	0.66		$	0.61		$	0.62		$	2.39		$	2.55
Cash dividends per common share	$	0.180		$	0.180		$	0.175		$	0.710		$	0.700
Dividend payout ratio		27	%		30	%		28	%		30	%		27	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Average Balances
Total loans and loans held for sale	$	4,556,770		$	4,536,702		$	4,463,644		$	4,491,304		$	4,396,341
Investment securities		744,149			722,577			730,050			733,055			760,976
Total earning assets		5,674,794			5,503,832			5,343,817			5,499,187			5,232,117
Total assets		6,085,277			5,907,115			5,719,313			5,894,958			5,601,371
Noninterest-bearing deposits		832,168			795,771			759,781			781,780			793,713
Interest-bearing deposits		4,442,150			4,319,606			4,217,771			4,328,430			4,037,554
Shareholders’ equity		612,184			597,984			556,245			592,550			550,333
Tangible common shareholders’ equity (non-GAAP)⁽¹⁾		510,308			496,091			454,294			490,647			448,355

Average Yields (annualized)
Total loans and loans held for sale		6.50	%		6.66	%		6.51	%		6.55	%		6.23	%
Investment securities		2.40	%		2.19	%		1.96	%		2.19	%		1.96	%
Total earning assets		5.84	%		5.98	%		5.82	%		5.88	%		5.57	%
Interest-bearing deposits		3.00	%		3.19	%		2.86	%		3.08	%		2.42	%
Interest-bearing liabilities		3.03	%		3.21	%		2.89	%		3.11	%		2.49	%

Performance Ratios (annualized)
Return on average assets		0.98	%		0.94	%		0.97	%		0.93	%		1.04	%
Return on average equity		9.79	%		9.28	%		9.97	%		9.21	%		10.54	%
Return on average tangible common equity (non-GAAP)⁽¹⁾		10.90	%		10.33	%		11.27	%		10.25	%		11.98	%
Net interest margin, fully tax equivalent basis (non-GAAP)⁽¹⁾		3.43	%		3.42	%		3.51	%		3.39	%		3.61	%
Efficiency Ratio, fully tax equivalent basis (non-GAAP)⁽¹⁾		63.02	%		65.58	%		66.93	%		65.47	%		64.45	%

Net Loan Charge-Offs
CNB Bank net loan charge-offs	$	1,719		$	837		$	747		$	5,782		$	1,702
Holiday Financial net loan charge-offs		425			383			487			1,730			1,739
Total Corporation net loan charge-offs	$	2,144		$	1,220		$	1,234		$	7,512		$	3,441
Annualized net loan charge-offs / average total loans and loans held for sale		0.19	%		0.11	%		0.11	%		0.17	%		0.08	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	December 31, 2024			September 30, 2024			December 31, 2023
Ending Balance Sheet
Cash and due from banks	$	63,771		$	75,214		$	54,789
Interest-bearing deposits with Federal Reserve		375,009			281,972			164,385
Interest-bearing deposits with other financial institutions		4,255			3,723			2,872
Total cash and cash equivalents		443,035			360,909			222,046
Debt securities available-for-sale, at fair value		468,546			378,965			341,955
Debt securities held-to-maturity, at amortized cost		306,081			328,152			388,968
Equity securities		10,456			10,389			9,301
Loans held for sale		762			768			675
Loans receivable
Syndicated loans		79,882			69,470			108,710
Loans		4,529,074			4,522,438			4,359,718
Total loans receivable		4,608,956			4,591,908			4,468,476
Less: allowance for credit losses		(47,357	)		(46,644	)		(45,832	)
Net loans receivable		4,561,599			4,545,264			4,422,644
Goodwill and other intangibles		43,874			43,874			43,874
Core deposit intangible		206			223			280
Other assets		357,451			346,300			323,214
Total Assets	$	6,192,010		$	6,014,844		$	5,752,957

Noninterest-bearing demand deposits	$	819,680		$	841,292		$	728,881
Interest-bearing demand deposits		706,796			681,056			803,093
Savings		3,122,028			3,040,769			2,960,282
Certificates of deposit		722,860			653,832			506,494
Total deposits		5,371,364			5,216,949			4,998,750
Subordinated debentures		20,620			20,620			20,620
Subordinated notes, net of issuance costs		84,570			84,495			84,267
Other liabilities		104,761			86,417			78,073
Total liabilities		5,581,315			5,408,481			5,181,710
Common stock		—			—			—
Preferred stock		57,785			57,785			57,785
Additional paid in capital		219,876			219,304			220,495
Retained earnings		381,296			371,086			345,935
Treasury stock		(4,689	)		(4,516	)		(6,890	)
Accumulated other comprehensive loss		(43,573	)		(37,296	)		(46,078	)
Total shareholders’ equity		610,695			606,363			571,247
Total liabilities and shareholders’ equity	$	6,192,010		$	6,014,844		$	5,752,957

Book value per common share	$	26.34		$	26.13		$	24.57
Tangible book value per common share (non-GAAP)⁽¹⁾	$	24.24		$	24.03		$	22.46


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	December 31, 2024			September 30, 2024			December 31, 2023
Capital Ratios
Tangible common equity / tangible assets (non-GAAP)⁽¹⁾		8.28	%		8.45	%		8.22	%
Tier 1 leverage ratio⁽²⁾		10.43	%		10.59	%		10.54	%
Common equity tier 1 ratio⁽²⁾		11.76	%		11.64	%		11.49	%
Tier 1 risk-based ratio⁽²⁾		13.41	%		13.30	%		13.20	%
Total risk-based ratio⁽²⁾		16.16	%		16.06	%		15.99	%

Asset Quality Detail
Nonaccrual loans	$	56,323		$	39,855		$	29,639
Loans 90+ days past due and accruing		653			666			55
Total nonperforming loans		56,976			40,521			29,694
Other real estate owned		2,509			1,514			2,111
Total nonperforming assets	$	59,485		$	42,035		$	31,805

Asset Quality Ratios
Nonperforming assets / Total loans + OREO		1.29	%		0.92	%		0.71	%
Nonperforming assets / Total assets		0.96	%		0.70	%		0.55	%
Ratio of allowance for credit losses on loans to nonaccrual loans		84.08	%		117.03	%		154.63	%
Allowance for credit losses / Total loans		1.03	%		1.02	%		1.03	%


Consolidated Financial Data Notes:
⁽¹⁾Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
⁽²⁾Capital ratios as of December 31, 2024 are estimated pending final regulatory filings.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Three Months Ended,
	December 31, 2024							September 30, 2024							December 31, 2023
	Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable^{(1) (4)}	$	711,286		2.36	%	$	4,487	$	690,098		2.14	%	$	3,980	$	694,369		1.89	%	$	3,626
Tax-exempt^{(1) (2) (4)}		25,489		2.67			184		25,368		2.57			178		27,590		2.55			198
Equity securities^{(1) (2)}		7,374		5.77			107		7,111		5.71			102		8,091		5.54			113
Total securities⁽⁴⁾		744,149		2.40			4,778		722,577		2.19			4,260		730,050		1.96			3,937
Loans receivable:
Commercial^{(2) (3)}		1,458,902		6.77			24,824		1,457,192		7.02			25,708		1,467,452		7.07			26,165
Mortgage and loans held for sale^{(2) (3)}		2,965,914		6.12			45,633		2,947,787		6.25			46,278		2,860,619		5.99			43,166
Consumer⁽³⁾		131,954		11.93			3,956		131,723		11.93			3,950		135,573		11.38			3,890
Total loans receivable⁽³⁾		4,556,770		6.50			74,413		4,536,702		6.66			75,936		4,463,644		6.51			73,221
Interest-bearing deposits with the Federal Reserve and other financial institutions		373,875		5.08			4,771		244,553		5.33			3,279		150,123		6.06			2,292
Total earning assets		5,674,794		5.84		$	83,962		5,503,832		5.98		$	83,475		5,343,817		5.82		$	79,450
Noninterest-bearing assets:
Cash and due from banks		59,445							58,472							55,815
Premises and equipment		124,398							118,404							109,469
Other assets		273,326							272,377							256,253
Allowance for credit losses		(46,686	)						(45,970	)						(46,041	)
Total non interest-bearing assets		410,483							403,283							375,496
TOTAL ASSETS	$	6,085,277						$	5,907,115						$	5,719,313
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	686,359		0.83	%	$	1,437	$	682,690		0.86	%	$	1,477	$	778,488		0.55	%	$	1,081
Savings		3,068,451		3.26			25,139		3,076,351		3.55			27,461		2,920,026		3.36			24,712
Time		687,340		4.02			6,953		560,565		4.03			5,684		519,257		3.50			4,587
Total interest-bearing deposits		4,442,150		3.00			33,529		4,319,606		3.19			34,622		4,217,771		2.86			30,380
Short-term borrowings		—		0.00			—		—		0.00			—		0		0.00			0
Finance lease liabilities		212		3.75			2		236		5.06			3		305		3.90			3
Subordinated notes and debentures		105,153		4.17			1,103		105,077		4.26			1,124		104,849		4.28			1,131
Total interest-bearing liabilities		4,547,515		3.03		$	34,634		4,424,919		3.21		$	35,749		4,322,925		2.89		$	31,514
Demand—noninterest-bearing		832,168							795,771							759,781
Other liabilities		93,410							88,441							80,362
Total Liabilities		5,473,093							5,309,131							5,163,068
Shareholders’ equity		612,184							597,984							556,245
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,085,277						$	5,907,115						$	5,719,313
Interest income/Earning assets				5.84	%	$	83,962				5.98	%	$	83,475				5.82	%	$	79,450
Interest expense/Interest-bearing liabilities				3.03			34,634				3.21			35,749				2.89			31,514
Net interest spread				2.81	%	$	49,328				2.77	%	$	47,726				2.93	%	$	47,936
Interest income/Earning assets				5.84	%		83,962				5.98	%		83,475				5.82	%		79,450
Interest expense/Earning assets				2.41			34,634				2.56			35,749				2.31			31,514
Net interest margin (fully tax-equivalent)				3.43	%	$	49,328				3.42	%	$	47,726				3.51	%	$	47,936

_____________________________________
⁽¹⁾Includes unamortized discounts and premiums.
⁽²⁾Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 was $284 thousand, $240 thousand and $242 thousand, respectively.
⁽³⁾Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
⁽⁴⁾Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 was $(47.0) million, $(51.1) million and $(68.5) million, respectively.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Twelve Months Ended,
	December 31, 2024							December 31, 2023
	Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable^{(1) (4)}	$	700,078		2.14	%	$	16,059	$	720,818		1.89	%	$	14,766
Tax-exempt^{(1) (2) (4)}		25,919		2.60			731		30,153		2.59			844
Equity securities^{(1) (2)}		7,058		5.71			403		10,005		5.09			509
Total securities⁽⁴⁾		733,055		2.19			17,193		760,976		1.96			16,119
Loans receivable:
Commercial^{(2) (3)}		1,440,667		6.88			99,184		1,501,202		6.63			99,587
Mortgage and loans held for sale^{(2) (3)}		2,920,537		6.15			179,645		2,765,484		5.77			159,606
Consumer⁽³⁾		130,100		11.95			15,547		129,655		11.47			14,868
Total loans receivable⁽³⁾		4,491,304		6.55			294,376		4,396,341		6.23			274,061
Interest-bearing deposits with the Federal Reserve and other financial institutions		274,828		5.41			14,856		74,800		6.03			4,513
Total earning assets		5,499,187		5.88		$	326,425		5,232,117		5.57		$	294,693
Noninterest-bearing assets:
Cash and due from banks		56,295							54,824
Premises and equipment		116,341							107,635
Other assets		269,167							251,725
Allowance for credit losses		(46,032	)						(44,930	)
Total non interest-bearing assets		395,771							369,254
TOTAL ASSETS	$	5,894,958						$	5,601,371
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	705,488		0.77	%	$	5,451	$	853,632		0.54	%	$	4,626
Savings		3,052,031		3.46			105,675		2,666,905		2.92			77,782
Time		570,911		3.92			22,367		517,017		2.97			15,362
Total interest-bearing deposits		4,328,430		3.08			133,493		4,037,554		2.42			97,770
Short-term borrowings		—		0.00			—		35,224		5.07			1,787
Finance lease liabilities		247		4.45			11		339		4.42			15
Subordinated notes and debentures		105,039		4.28			4,497		104,735		4.10			4,295
Total interest-bearing liabilities		4,433,716		3.11		$	138,001		4,177,852		2.49		$	103,867
Demand—noninterest-bearing		781,780							793,713
Other liabilities		86,912							79,473
Total Liabilities		5,302,408							5,051,038
Shareholders’ equity		592,550							550,333
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,894,958						$	5,601,371
Interest income/Earning assets				5.88	%	$	326,425				5.57	%	$	294,693
Interest expense/Interest-bearing liabilities				3.11			138,001				2.49			103,867
Net interest spread				2.77	%	$	188,424				3.08	%	$	190,826
Interest income/Earning assets				5.88	%		326,425				5.57	%		294,693
Interest expense/Earning assets				2.49			138,001				1.96			103,867
Net interest margin (fully tax-equivalent)				3.39	%	$	188,424				3.61	%	$	190,826

_____________________________________
⁽¹⁾Includes unamortized discounts and premiums.
⁽²⁾Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the twelve months ended December 31, 2024 and 2023, was $955 thousand and $997 thousand, respectively.
⁽³⁾Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
⁽⁴⁾Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the twelve months ended December 31, 2024 and 2023 was $(53.1) million and $(61.1) million, respectively.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	December 31, 2024			September 30, 2024			December 31, 2023
Calculation of tangible book value per common share and tangible common equity / tangible assets (non-GAAP):
Shareholders’ equity	$	610,695		$	606,363		$	571,247
Less: preferred equity		57,785			57,785			57,785
Common shareholders’ equity		552,910			548,578			513,462
Less: goodwill and other intangibles		43,874			43,874			43,874
Less: core deposit intangible		206			223			280
Tangible common equity (non-GAAP)	$	508,830		$	504,481		$	469,308

Total assets	$	6,192,010		$	6,014,844		$	5,752,957
Less: goodwill and other intangibles		43,874			43,874			43,874
Less: core deposit intangible		206			223			280
Tangible assets (non-GAAP)	$	6,147,930		$	5,970,747		$	5,708,803

Ending shares outstanding		20,987,992			20,994,730			20,896,439

Book value per common share (GAAP)	$	26.34		$	26.13		$	24.57
Tangible book value per common share (non-GAAP)	$	24.24		$	24.03		$	22.46

Common shareholders’ equity / Total assets (GAAP)		8.93	%		9.12	%		8.93	%
Tangible common equity / Tangible assets (non-GAAP)		8.28	%		8.45	%		8.22	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of net interest margin:
Interest income	$	83,678		$	83,235		$	79,208		$	325,470		$	293,696
Interest expense		34,634			35,749			31,514			138,001			103,867
Net interest income	$	49,044		$	47,486		$	47,694		$	187,469		$	189,829

Average total earning assets	$	5,674,794		$	5,503,832		$	5,343,817		$	5,499,187		$	5,232,117

Net interest margin (GAAP) (annualized)		3.44	%		3.43	%		3.54	%		3.41	%		3.63	%

Calculation of net interest margin (fully tax equivalent basis) (non-GAAP):
Interest income	$	83,678		$	83,235		$	79,208		$	325,470		$	293,696
Tax equivalent adjustment (non-GAAP)		284			240			242			955			997
Adjusted interest income (fully tax equivalent basis) (non-GAAP)		83,962			83,475			79,450			326,425			294,693
Interest expense		34,634			35,749			31,514			138,001			103,867
Net interest income (fully tax equivalent basis) (non-GAAP)	$	49,328		$	47,726		$	47,936		$	188,424		$	190,826

Average total earning assets	$	5,674,794		$	5,503,832		$	5,343,817		$	5,499,187		$	5,232,117
Less: average mark to market adjustment on investments (non-GAAP)		(46,988	)		(51,075	)		(68,546	)		(53,087	)		(61,089	)
Adjusted average total earning assets, net of mark to market (non-GAAP)	$	5,721,782		$	5,554,907		$	5,412,363		$	5,552,274		$	5,293,206

Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)		3.43	%		3.42	%		3.51	%		3.39	%		3.61	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Calculation of PPNR (non-GAAP):⁽¹⁾
Net interest income	$	49,044	$	47,486	$	47,694	$	187,469	$	189,829
Add: Non-interest income		10,321		10,973		9,137		39,114		33,335
Less: Non-interest expense		37,805		38,784		38,450		150,002		145,342
PPNR (non-GAAP)	$	21,560	$	19,675	$	18,381	$	76,581	$	77,822

⁽¹⁾Management believes that this is an important metric as it illustrates the underlying performance of the Corporation, it enables investors and others to assess the Corporation’s ability to generate capital to cover credit losses through the credit cycle and provides consistent reporting with a key metric used by bank regulatory agencies.

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of efficiency ratio:
Non-interest expense	$	37,805		$	38,784		$	38,450		$	150,002		$	145,342

Non-interest income	$	10,321		$	10,973		$	9,137		$	39,114		$	33,335
Net interest income		49,044			47,486			47,694			187,469			189,829
Total revenue	$	59,365		$	58,459		$	56,831		$	226,583		$	223,164
Efficiency ratio		63.68	%		66.34	%		67.66	%		66.20	%		65.13	%

Calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):
Non-interest expense	$	37,805		$	38,784		$	38,450		$	150,002		$	145,342
Less: core deposit intangible amortization		16			18			19			73			84
Adjusted non-interest expense (non-GAAP)	$	37,789		$	38,766		$	38,431		$	149,929		$	145,258

Non-interest income	$	10,321		$	10,973		$	9,137		$	39,114		$	33,335

Net interest income	$	49,044		$	47,486		$	47,694		$	187,469		$	189,829
Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)		1,508			1,473			1,383			5,635			5,425
Add: tax exempt investment and loan income (fully tax equivalent basis) (non-GAAP)		2,111			2,123			1,968			8,068			7,635
Adjusted net interest income (fully tax equivalent basis) (non-GAAP)		49,647			48,136			48,279			189,902			192,039
Adjusted net revenue (fully tax equivalent basis) (non-GAAP)	$	59,968		$	59,109		$	57,416		$	229,016		$	225,374

Efficiency ratio (fully tax equivalent basis) (non-GAAP)		63.02	%		65.58	%		66.93	%		65.47	%		64.45	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of return on average tangible common equity (non-GAAP):
Net income	$	15,064		$	13,954		$	13,977		$	54,575		$	58,020
Less: preferred stock dividends		1,076			1,076			1,076			4,302			4,302
Net income available to common shareholders	$	13,988		$	12,878		$	12,901		$	50,273		$	53,718

Average shareholders’ equity	$	612,184		$	597,984		$	556,245		$	592,550		$	550,333
Less: average goodwill & intangibles		44,091			44,108			44,166			44,118			44,193
Less: average preferred equity		57,785			57,785			57,785			57,785			57,785
Tangible common shareholders’ equity (non-GAAP)	$	510,308		$	496,091		$	454,294		$	490,647		$	448,355

Return on average equity (GAAP) (annualized)		9.79	%		9.28	%		9.97	%		9.21	%		10.54	%
Return on average common equity (GAAP) (annualized)		10.04	%		9.48	%		10.27	%		9.40	%		10.91	%
Return on average tangible common equity (non-GAAP) (annualized)		10.90	%		10.33	%		11.27	%		10.25	%		11.98	%

The MIL Network –

January 29, 2025

MIL-OSI: Hanmi Reports 2024 Fourth Quarter and Full Year Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the fourth quarter of 2024 and full year.

Net income for the fourth quarter of 2024 was $17.7 million, or $0.58 per diluted share, compared with $14.9 million, or $0.49 per diluted share, for the third quarter of 2024. The return on average assets for the fourth quarter of 2024 was 0.93% and the return on average equity was 8.89%, compared with a return on average assets of 0.79% and a return on average equity of 7.55% for the third quarter of 2024.

For the full year of 2024, net income was $62.2 million, or $2.05 per diluted share, compared with $80.0 million, or $2.62 per diluted share, for 2023. The return on average assets for 2024 was 0.83% and the return on average equity was 7.97%.

CEO Commentary
“Hanmi achieved exceptional results in the fourth quarter, delivering our best quarterly performance of the year and closing 2024 with strong momentum,” said Bonnie Lee, President and Chief Executive Officer. “Our team’s outstanding execution generated significant earnings growth fueled by our net interest margin expansion of 17 basis points to 2.91%, disciplined expense management, and vigilant credit administration. These robust results highlight the strength of our relationship-driven banking model.”

“For the full year, we had a number of key accomplishments to advance our growth and diversification strategy. We delivered 16% growth in our C&I loan portfolio, driven primarily by the strong contribution from our Corporate Korea initiative. Noninterest-bearing demand deposits grew by 5% and now represent 33% of our total deposits. Finally, through our proactive monitoring of the portfolio and our successful resolution efforts, we further improved asset quality with nonperforming assets as a percentage of total assets decreasing to 0.19%.”

“With our strong capital foundation, we are well positioned to execute on our growth strategy. Our performance is the result of our team’s unwavering dedication to serving our customers and the communities in which we operate. I want to thank each of them for their continued commitment to deliver long-term value for our shareholders,” concluded Lee.

Fourth Quarter 2024 Highlights:

Fourth quarter net income was $17.7 million, or $0.58 per diluted share, up 18.8% from $14.9 million, or $0.49 per diluted share for the third quarter of 2024. The increase reflects a $3.4 million, or 6.8%, increase in net interest income, primarily due to a decrease in interest expense on deposits.
Loans receivable were $6.25 billion at December 31, 2024, essentially unchanged from the end of the third quarter of 2024; loan production for the fourth quarter was $339.0 million, with a weighted average interest rate of 7.37%, compared with loan production for the third quarter of $347.8 million, with a weighted average interest rate of 7.92%.
Deposits were $6.44 billion at December 31, 2024, up 0.5% from the end of the third quarter of 2024; noninterest-bearing demand deposits were 32.6% of total deposits. During the quarter, noninterest-bearing demand deposits grew 2.2%, while time deposits declined 2.0% from the prior quarter.
Net interest income for the fourth quarter was $53.4 million, up 6.8% from the third quarter of 2024. Net interest margin (taxable equivalent) increased 17 basis points to 2.91%; the average yield on loans declined three basis points to 5.97%, while the cost of interest-bearing deposits fell 31 basis points to 3.96%.

Credit loss expense for the fourth quarter was $0.9 million, a decrease from $2.3 million for the prior quarter. The allowance for credit losses increased $1.0 million to $70.1 million at December 31, 2024, or 1.12% of loans. For the fourth quarter, net loan recoveries were $0.1 million.
Asset quality remained strong, as nonperforming loans declined by 7.9% to $14.3 million, or 0.23% of loans, which included pay-offs of $1.8 million, while criticized loans increased to $165.3 million, as special mention loans increased to $139.6 million and classified loans fell to $25.7 million.

For more information about Hanmi, please see the Q4 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended																Amount Change
	December 31,			September 30,				June 30,			March 31,			December 31,			Q4-24			Q4-24
	2024				2024			2024			2024			2023			vs. Q3-24			vs. Q4-23

Net income	$	17,695			$	14,892		$	14,451		$	15,164		$	18,633		$	2,803		$	(938	)
Net income per diluted common share	$	0.58			$	0.49		$	0.48		$	0.50		$	0.61		$	0.09		$	(0.03	)

Assets	$	7,677,925			$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341		$	(34,374	)	$	107,584
Loans receivable	$	6,251,377			$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434		$	(6,367	)	$	68,943
Deposits	$	6,435,776			$	6,403,221		$	6,329,340		$	6,376,060		$	6,280,574		$	32,555		$	155,202

Return on average assets		0.93	%			0.79	%		0.77	%		0.81	%		0.99	%		0.14			-0.06
Return on average stockholders’ equity		8.89	%			7.55	%		7.50	%		7.90	%		9.70	%		1.34			-0.81

Net interest margin		2.91	%			2.74	%		2.69	%		2.78	%		2.92	%		0.17			-0.01
Efficiency ratio ⁽¹⁾		56.79	%			59.98	%		62.24	%		62.42	%		58.86	%		-3.19			-2.07

Tangible common equity to tangible assets ⁽²⁾		9.41	%			9.42	%		9.19	%		9.23	%		9.14	%		-0.01			0.27
Tangible common equity per common share ⁽²⁾	$	23.88			$	24.03		$	22.99		$	22.86		$	22.75			-0.15			1.14


⁽¹⁾Noninterest expense divided by net interest income plus noninterest income.
⁽²⁾Refer to “Non-GAAP Financial Measures” for further details.

Results of Operations
Net interest income for the fourth quarter was $53.4 million, up 6.8% from $50.1 million for the third quarter of 2024. The increase was primarily due to a decrease in deposit interest expense. The decrease in deposit interest expense was primarily a result of decreases in deposit rates and the average balances of interest-bearing deposits, coupled with a 3.1% increase in the average balance of noninterest-bearing demand deposits. The rate on deposits for the fourth quarter decreased 31 basis points to 3.96%, from 4.27% for the third quarter of 2024. The average balance of interest-bearing deposits decreased to $4.36 billion for the fourth quarter of 2024, from $4.40 billion for the third quarter. The average balance of noninterest-bearing deposits for the fourth quarter increased to $1.97 billion, from $1.91 billion for the third quarter of 2024. Net interest margin (taxable equivalent) for the fourth quarter was 2.91%, up 17 basis points from 2.74% for the third quarter of 2024.

Net interest income was $202.8 million for the full year of 2024 compared with $221.3 million for 2023, a decline of 8.4%. The decrease reflected higher interest rates during 2024 compared with 2023, including an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. The cost of interest-bearing deposits for 2024 year increased 81 basis points to 4.16% from 3.35% for 2023. The yield on average interest-earning assets for 2024 increased 31 basis points to 5.46% from 5.15% for 2023. The average balance of interest-bearing deposits for 2024 increased to $4.39 billion from $4.02 billion for 2023. The average balance of interest-earning assets for 2024 year increased 1.7% to $7.30 billion from $7.18 billion for 2023. The average balance of loans for 2024 year was $6.11 billion, up 2.4% from $5.97 billion for 2023. Net interest margin (taxable-equivalent) for 2024 year was 2.78% compared with 3.08% for 2023. The 30 basis point decrease in the net interest margin reflected the increase in the cost of interest-bearing deposits, partially offset by the increase in average loan yields.

	For the Three Months Ended (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24			Q4-24
Net Interest Income	2024		2024		2024		2024		2023		vs. Q3-24			vs. Q4-23

Interest and fees on loans receivable⁽¹⁾	$	91,545	$	92,182	$	90,752	$	91,674	$	89,922		-0.7	%		1.8	%
Interest on securities		5,866		5,523		5,238		4,955		4,583		6.2	%		28.0	%
Dividends on FHLB stock		360		356		357		361		341		1.1	%		5.6	%
Interest on deposits in other banks		2,342		2,356		2,313		2,604		2,337		-0.6	%		0.2	%
Total interest and dividend income	$	100,113	$	100,417	$	98,660	$	99,594	$	97,183		-0.3	%		3.0	%

Interest on deposits		43,406		47,153		46,495		45,638		40,277		-7.9	%		7.8	%
Interest on borrowings		1,634		1,561		1,896		1,655		2,112		4.7	%		-22.6	%
Interest on subordinated debentures		1,624		1,652		1,649		1,646		1,654		-1.7	%		-1.8	%
Total interest expense		46,664		50,366		50,040		48,939		44,043		-7.4	%		6.0	%
Net interest income	$	53,449	$	50,051	$	48,620	$	50,655	$	53,140		6.8	%		0.6	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing Liabilities		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Q4-24 vs. Q3-24		Q4-24 vs. Q4-23
Loans receivable ⁽¹⁾	$	6,103,264	$	6,112,324	$	6,089,440	$	6,137,888	$	6,071,644		-0.1	%	0.5	%
Securities		998,313		986,041		979,671		969,520		961,551		1.2	%	3.8	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%	0.0	%
Interest-bearing deposits in other banks		204,408		183,027		180,177		201,724		181,140		11.7	%	12.8	%
Average interest-earning assets	$	7,322,370	$	7,297,777	$	7,265,673	$	7,325,517	$	7,230,720		0.3	%	1.3	%

Demand: interest-bearing	$	79,784	$	83,647	$	85,443	$	86,401	$	86,679		-4.6	%	-8.0	%
Money market and savings		1,934,540		1,885,799		1,845,870		1,815,085		1,669,973		2.6	%	15.8	%
Time deposits		2,346,363		2,427,737		2,453,154		2,507,830		2,417,803		-3.4	%	-3.0	%
Average interest-bearing deposits		4,360,687		4,397,183		4,384,467		4,409,316		4,174,455		-0.8	%	4.5	%
Borrowings		141,604		143,479		169,525		162,418		205,951		-1.3	%	-31.2	%
Subordinated debentures		130,567		130,403		130,239		130,088		129,933		0.1	%	0.5	%
Average interest-bearing liabilities	$	4,632,858	$	4,671,065	$	4,684,231	$	4,701,822	$	4,510,339		-0.8	%	2.7	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,967,789	$	1,908,833	$	1,883,765	$	1,921,189	$	2,025,212		3.1	%	-2.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4-24		Q4-24
Average Yields and Rates	2024			2024			2024			2024			2023			vs. Q3-24		vs. Q4-23
Loans receivable⁽¹⁾		5.97	%		6.00	%		5.99	%		6.00	%		5.88	%		-0.03		0.09
Securities ⁽²⁾		2.38	%		2.27	%		2.17	%		2.07	%		1.93	%		0.11		0.45
FHLB stock		8.75	%		8.65	%		8.77	%		8.87	%		8.25	%		0.10		0.50
Interest-bearing deposits in other banks		4.56	%		5.12	%		5.16	%		5.19	%		5.12	%		-0.56		-0.56
Interest-earning assets		5.45	%		5.48	%		5.46	%		5.47	%		5.34	%		-0.03		0.11

Interest-bearing deposits		3.96	%		4.27	%		4.27	%		4.16	%		3.83	%		-0.31		0.13
Borrowings		4.59	%		4.33	%		4.50	%		4.10	%		4.07	%		0.26		0.52
Subordinated debentures		4.97	%		5.07	%		5.07	%		5.06	%		5.09	%		-0.10		-0.12
Interest-bearing liabilities		4.01	%		4.29	%		4.30	%		4.19	%		3.88	%		-0.28		0.13

Net interest margin (taxable equivalent basis)		2.91	%		2.74	%		2.69	%		2.78	%		2.92	%		0.17		-0.01

Cost of deposits		2.73	%		2.97	%		2.98	%		2.90	%		2.58	%		-0.24		0.15

⁽¹⁾Includes loans held for sale.
⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the fourth quarter was $0.9 million, compared with $2.3 million for the third quarter of 2024. Fourth quarter credit loss expense included a $0.9 million credit loss expense for loan losses. Fourth quarter net loan recoveries were $0.1 million, compared to third quarter net loan charge-offs of $0.9 million.

Credit loss expense was $4.4 million for 2024, compared with $4.3 million for 2023. The credit loss expense for 2024 was comprised of a $4.8 million credit loss expense for loan losses and a $0.4 million credit loss expense recovery for off-balance sheet items. 2023 credit loss expense was comprised of a $4.9 million credit loss expense for loan losses and a $0.6 million credit loss expense recovery for off-balance sheet items.

Noninterest income for the fourth quarter decreased $1.0 million, or 12.8%, to $7.4 million, from $8.4 million for the third quarter of 2024. The decrease was primarily due to a $0.9 million gain from the sale and leaseback of a branch property included in third quarter noninterest income. Gains on sales of SBA loans were $1.4 million for the fourth quarter of 2024, compared with $1.5 million for the third quarter of 2024. The volume of SBA loans sold for the fourth quarter decreased to $21.6 million, from $23.0 million for the third quarter of 2024, while trade premiums were 8.53% for the fourth quarter of 2024, slightly lower than 8.54% for the third quarter. Mortgage loans sold for the fourth quarter were $18.3 million, with a premium of 1.96%, compared with $20.9 million and 2.32% for the third quarter. Gains on mortgage loans sold were $0.3 million for both quarters.

Noninterest income decreased $2.6 million, or 7.6%, to $31.6 million for 2024, from $34.2 million for 2023, primarily due to a $4.0 million gain on the sale-and-leaseback of a branch property in 2023 and a $0.8 million decrease in service charges on deposits. Those items were partially offset by a $1.5 million gain on the sale of mortgage loans and a $0.9 million gain from the sale and leaseback of a branch property in 2024. The volume of SBA loans sold in 2024 declined to $93.7 million, from $100.5 million for 2023, while trade premiums increased to 8.18% for 2024, from 7.12% for 2023.

	For the Three Months Ended (in thousands)											Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,			Q4-24			Q4-24
Noninterest Income	2024		2024		2024		2024		2023			vs. Q3-24			vs. Q4-23
Service charges on deposit accounts	$	2,192	$	2,311	$	2,429	$	2,450	$	2,391			-5.1	%		-8.3	%
Trade finance and other service charges and fees		1,364		1,254		1,277		1,414		1,245			8.8	%		9.6	%
Servicing income		668		817		796		712		772			-18.2	%		-13.5	%
Bank-owned life insurance income (expense)		316		320		638		304		(29	)		-1.3	%	N/M
All other operating income		1,037		1,008		908		928		853			2.9	%		21.6	%
Service charges, fees & other		5,577		5,710		6,048		5,808		5,232			-2.3	%		6.6	%

Gain on sale of SBA loans		1,443		1,544		1,644		1,482		1,448			-6.5	%		-0.3	%
Gain on sale of mortgage loans		337		324		365		443		–			4.0	%		0.0	%
Gain on sale of bank premises		–		860		–		–		–			-100.0	%		0.0	%
Total noninterest income	$	7,357	$	8,438	$	8,057	$	7,733	$	6,680			-12.8	%		10.1	%

N/M – Not meaningful.

Noninterest expense for the fourth quarter decreased by $0.6 million to $34.5 million from $35.1 million for the third quarter of 2024. The decrease primarily reflects a $1.6 million gain on the sale of an other real estate owned property. Absent this gain, fourth quarter noninterest expense was up 3.1% sequentially, due to increases in advertising and promotion expense and legal fees from collections and business activities. In addition, other operating expense for the fourth quarter included a $0.5 million charge related to an SBA loan acquired in a previous acquisition, while the third quarter included a $0.3 million reimbursement for property taxes. The efficiency ratio for the fourth quarter was 56.8%, compared with 60.0% for the third quarter of 2024.

Noninterest expense increased by $4.8 million, or 3.5%, to $141.3 million for 2024, from $136.5 million for 2023. The increase reflected a $2.0 million, or 2.4%, increase in salaries and benefits, a $1.2 million increase in data processing expense, a $0.7 million increase in professional fees, and a $1.4 million increase in other operating expenses. Decreases of $0.2 million in occupancy and equipment expense and $0.2 million in supplies and communication expense partially offset the increases. The efficiency ratio for 2024 increased to 60.3%, from 53.5% for 2023, primarily due to higher expenses and lower revenue.

	For the Three Months Ended (in thousands)											Percentage Change
	Dec 31,			Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24		Q4-24
	2024			2024		2024		2024		2023		vs. Q3-24		vs. Q4-23
Noninterest Expense
Salaries and employee benefits	$	20,498		$	20,851	$	20,434	$	21,585	$	20,062	-1.7	%	2.2	%
Occupancy and equipment		4,503			4,499		4,348		4,537		4,604	0.1	%	-2.2	%
Data processing		3,800			3,839		3,686		3,551		3,487	-1.0	%	9.0	%
Professional fees		1,821			1,492		1,749		1,893		1,977	22.1	%	-7.9	%
Supplies and communication		551			538		570		601		613	2.4	%	-10.1	%
Advertising and promotion		821			631		669		907		990	30.1	%	-17.1	%
All other operating expenses		3,847			2,875		3,251		3,160		3,252	33.8	%	18.3	%
Subtotal		35,841			34,725		34,707		36,234		34,985	3.2	%	2.4	%

Branch consolidation expense		–			–		301		–		–	0.0	%	0.0	%
Other real estate owned (income) expense		(1,588	)		77		6		22		15	N/M		N/M
Repossessed personal property expense		281			278		262		189		211	1.1	%	33.2	%
Total noninterest expense	$	34,534		$	35,080	$	35,276	$	36,445	$	35,211	-1.6	%	-1.9	%

N/M – Not meaningful.

Hanmi recorded a provision for income taxes of $7.6 million for the fourth quarter of 2024, compared with $6.2 million for the third quarter of 2024, representing an effective tax rate of 30.1% and 29.5%, respectively. The effective tax rates for 2024 and 2023 years were 29.8% and 30.1%, respectively.

Financial Position
Total assets at December 31, 2024, decreased 0.4%, or $33.7 million, to $7.68 billion from $7.71 billion at September 30, 2024. The decrease reflected a $45.8 million decrease in loans held-for-sale and a $6.4 million decrease in loans, offset partially by a $17.0 million increase in cash and due from banks. From December 31, 2023, total assets increased 1.4%, or $108.2 million. This year-over-year increase reflected a 1.1%, or $68.9 million, growth in loans receivable, and a 4.6%, or $40.1 million increase in securities, supported by a 2.5%, or $155.2 million increase in deposits.

Loans receivable, before allowance for credit losses, were $6.25 billion at December 31, 2024, down from $6.26 billion at September 30, 2024.

Loans held-for-sale were $8.6 million at December 31, 2024, down from $54.3 million at September 30, 2024. At the end of the fourth quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans. The prior quarter included $18.3 million of residential mortgage loans and a $27.2 million nonaccrual loan, all of which were sold in the fourth quarter.

	As of (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24			Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24			vs. Q4-23
Loan Portfolio
Commercial real estate loans	$	3,949,622	$	3,932,088	$	3,888,505	$	3,878,677	$	3,889,739		0.4	%	1.5	%
Residential/consumer loans		951,302		939,285		954,209		970,362		962,661		1.3	%	-1.2	%
Commercial and industrial loans		863,431		879,092		802,372		774,851		747,819		-1.8	%	15.5	%
Equipment finance		487,022		507,279		531,273		553,950		582,215		-4.0	%	-16.4	%
Loans receivable		6,251,377		6,257,744		6,176,359		6,177,840		6,182,434		-0.1	%	1.1	%
Loans held for sale		8,579		54,336		10,467		3,999		12,013		-84.2	%	-28.6	%
Total	$	6,259,956	$	6,312,080	$	6,186,826	$	6,181,839	$	6,194,447		-0.8	%	1.1	%

	As of
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2024		2024		2024		2024		2023
Composition of Loan Portfolio
Commercial real estate loans	63.1	%	62.3	%	62.9	%	62.7	%	62.8	%
Residential/consumer loans	15.2	%	14.9	%	15.4	%	15.7	%	15.5	%
Commercial and industrial loans	13.8	%	13.9	%	13.0	%	12.5	%	12.1	%
Equipment finance	7.8	%	8.0	%	8.5	%	9.0	%	9.4	%
Loans receivable	99.9	%	99.1	%	99.8	%	99.9	%	99.8	%
Loans held for sale	0.1	%	0.9	%	0.2	%	0.1	%	0.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

New loan production was $339.0 million for the fourth quarter of 2024 at an average rate of 7.37%, while payoffs were $137.9 million during the quarter at an average rate of 6.78%.

Commercial real estate loan production for the fourth quarter of 2024 was $146.7 million. Commercial and industrial loan production was $60.2 million, SBA loan production was $49.7 million, equipment finance production was $42.2 million, and residential mortgage loan production was $40.2 million.

New loan production for 2024 was $1.20 billion, a decrease of 7.4%, or $96.0 million, from $1.29 billion for the full year 2023. The average rate for new loan production for 2024 was 7.87% compared with 7.66% for 2023. Payoffs for 2024 were $450.2 million with an average rate of 7.34% compared with $386.0 million and 7.13% for 2023.

	For the Three Months Ended (in thousands)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2024			2024			2024			2024			2023
New Loan Production
Commercial real estate loans	$	146,716		$	110,246		$	87,632		$	60,085		$	178,157
Commercial and industrial loans		60,159			105,086			59,007			50,789			52,079
SBA loans		49,740			51,616			54,486			30,817			48,432
Equipment finance		42,168			40,066			42,594			39,155			57,334
Residential/consumer loans		40,225			40,758			30,194			53,115			53,465
subtotal		339,008			347,772			273,913			233,961			389,467


Payoffs		(137,932	)		(77,603	)		(148,400	)		(86,250	)		(77,961	)
Amortization		(60,583	)		(151,674	)		(83,640	)		(90,711	)		(106,610	)
Loan sales		(67,852	)		(43,868	)		(42,945	)		(55,321	)		(29,861	)
Net line utilization		(75,651	)		9,426			1,929			(4,150	)		(11,609	)
Charge-offs & OREO		(3,356	)		(2,668	)		(2,338	)		(2,123	)		(1,777	)

Loans receivable-beginning balance		6,257,744			6,176,359			6,177,840			6,182,434			6,020,785
Loans receivable-ending balance	$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434

Deposits were $6.44 billion at the end of the fourth quarter of 2024, up $32.6 million, or 0.5%, from $6.40 billion at the end of the prior quarter. Driving the change was a $44.8 million increase in noninterest-bearing demand deposits and a $34.7 million increase in money market and savings deposits, partially offset by a $48.0 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.6% of total deposits at December 31, 2024, and the loan-to-deposit ratio was 97.1%.

	As of (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24		Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24		vs. Q4-23
Deposit Portfolio
Demand: noninterest-bearing	$	2,096,634	$	2,051,790	$	1,959,963	$	1,933,060	$	2,003,596	2.2	%	4.6	%
Demand: interest-bearing		80,323		79,287		82,981		87,374		87,452	1.3	%	-8.2	%
Money market and savings		1,933,535		1,898,834		1,834,797		1,859,865		1,734,658	1.8	%	11.5	%
Time deposits		2,325,284		2,373,310		2,451,599		2,495,761		2,454,868	-2.0	%	-5.3	%
Total deposits	$	6,435,776	$	6,403,221	$	6,329,340	$	6,376,060	$	6,280,574	0.5	%	2.5	%

	As of
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2024		2024		2024		2024		2023
Composition of Deposit Portfolio
Demand: noninterest-bearing	32.6	%	32.0	%	31.0	%	30.3	%	31.9	%
Demand: interest-bearing	1.2	%	1.2	%	1.3	%	1.4	%	1.4	%
Money market and savings	30.0	%	29.7	%	29.0	%	29.2	%	27.6	%
Time deposits	36.2	%	37.1	%	38.7	%	39.1	%	39.1	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Stockholders’ equity at December 31, 2024, was $732.2 million, down $4.5 million from $736.7 million at September 30, 2024. The decrease was due to a $14.6 million increase in unrealized after-tax losses on securities available for sale and a $1.0 million increase in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the fourth quarter of 2024. Hanmi also repurchased 24,500 shares of common stock, at a cost of $0.6 million, during the quarter at an average share price of $22.91. At December 31, 2024, 1,230,500 shares remain under Hanmi’s share repurchase program. Partially offsetting these decreases was $10.2 million of net income, net of dividends paid, for the fourth quarter. Tangible common stockholders’ equity was $721.1 million, or 9.41% of tangible assets, at December 31, 2024, compared with $725.7 million, or 9.42% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At December 31, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.11% and its total risk-based capital ratio was 15.24%, compared with 11.95% and 15.03%, respectively, at the end of the prior quarter.

	As of										Ratio Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24	Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24	vs. Q4-23
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital	15.24	%	15.03	%	15.24	%	15.20	%	14.95	%	0.21	0.29
Tier 1 risk-based capital	12.46	%	12.29	%	12.46	%	12.40	%	12.20	%	0.17	0.26
Common equity tier 1 capital	12.11	%	11.95	%	12.11	%	12.05	%	11.86	%	0.16	0.25
Tier 1 leverage capital ratio	10.63	%	10.56	%	10.51	%	10.36	%	10.37	%	0.07	0.26
Hanmi Bank
Total risk-based capital	14.43	%	14.27	%	14.51	%	14.50	%	14.27	%	0.16	0.16
Tier 1 risk-based capital	13.36	%	13.23	%	13.47	%	13.44	%	13.26	%	0.13	0.10
Common equity tier 1 capital	13.36	%	13.23	%	13.47	%	13.44	%	13.26	%	0.13	0.10
Tier 1 leverage capital ratio	11.46	%	11.43	%	11.41	%	11.29	%	11.32	%	0.03	0.14

⁽¹⁾Preliminary ratios for December 31, 2024

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.30% of loans at the end of the fourth quarter of 2024, compared with 0.24% at the end of the prior quarter.

Criticized loans totaled $165.3 million at December 31, 2024, up from $160.0 million at the end of the third quarter of 2024. The $5.3 million increase resulted from an $8.0 million increase in special mention loans and a $2.7 million decrease in classified loans. The $8.0 million increase in special mention loans included additions of $13.4 million, offset by loan reductions and pay-downs of $3.8 million, upgrades of $1.3 million and downgrades of $0.3 million. The $2.7 million decrease in classified loans resulted from $2.9 million of charge-offs, $2.4 million of payoffs, $1.4 million of upgrades and $1.6 million of amortization and paydowns, offset by loan downgrades of $2.7 million and lease downgrades of $2.9 million.

Nonperforming loans were $14.3 million at December 31, 2024, down from $15.5 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $1.8 million, $1.0 million in loan upgrades, $0.8 million in paydowns, and charge-offs of $2.9 million. Offsetting the decrease were additions of $5.5 million.

Nonperforming assets were $14.4 million at the end of the fourth quarter of 2024, down from $16.3 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.19% at December 31, 2024, and 0.21% at the end of the prior quarter.

Gross charge-offs for the fourth quarter of 2024 were $3.4 million, compared with $3.8 million for the preceding quarter. Charge-offs included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $3.5 million in the fourth quarter of 2024. As a result, there were $0.1 million of net recoveries for the fourth quarter of 2024, compared to net charge-offs of $0.9 million for the prior quarter. For 2024, net charge-offs were 0.07% of average loans, compared with 0.12% for 2023.

The allowance for credit losses was $70.1 million at December 31, 2024, compared with $69.2 million at September 30, 2024. Specific allowances for loans increased $1.0 million, while the allowance for quantitative and qualitative considerations remained relatively unchanged. The ratio of the allowance for credit losses to loans was 1.12% at December 31, 2024 and 1.11% at September 30, 2024.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4-24			Q4-24
	2024			2024			2024			2024			2023			vs. Q3-24			vs. Q4-23
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	18,454		$	15,027		$	13,844		$	15,839		$	10,263		$	3,427		$	8,191
Delinquent loans to total loans		0.30	%		0.24	%		0.22	%		0.26	%		0.17	%		0.06			0.13

Criticized loans:
Special mention	$	139,612		$	131,575		$	36,921		$	62,317		$	65,314		$	8,037		$	74,298
Classified		25,683			28,377			33,945			23,670			31,367			(2,694	)		(5,684	)
Total criticized loans	$	165,295		$	159,952		$	70,866		$	85,987		$	96,681		$	5,343		$	68,614

Nonperforming assets:
Nonaccrual loans	$	14,274		$	15,248		$	19,245		$	14,025		$	15,474		$	(974	)	$	(1,200	)
Loans 90 days or more past due and still accruing		–			242			–			–			–			(242	)		–
Nonperforming loans*		14,274			15,490			19,245			14,025			15,474			(1,216	)		(1,200	)
Other real estate owned, net		117			772			772			117			117			(655	)		–
Nonperforming assets**	$	14,391		$	16,262		$	20,017		$	14,142		$	15,591		$	(1,871	)	$	(1,200	)

Nonperforming assets to assets*		0.19	%		0.21	%		0.26	%		0.19	%		0.21	%		-0.02			-0.02
Nonperforming loans to total loans		0.23	%		0.25	%		0.31	%		0.23	%		0.25	%		-0.02			-0.02

* Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
** Excludes repossessed personal property of $0.6 million, $1.2 million, $1.2 million, $1.3 million, and $1.3 million as of Q4-24, Q3-24, Q2-24, Q1-24, and Q4-23, respectively

	As of or for the Three Months Ended (in thousands)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2024			2024			2024			2024			2023
Allowance for credit losses related to loans:
Balance at beginning of period	$	69,163		$	67,729		$	68,270		$	69,462		$	67,313
Credit loss expense (recovery) on loans		855			2,312			1,248			404			(2,880	)
Net loan (charge-offs) recoveries		129			(878	)		(1,789	)		(1,596	)		5,029
Balance at end of period	$	70,147		$	69,163		$	67,729		$	68,270		$	69,462

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		-0.01	%		0.06	%		0.12	%		0.10	%		-0.33	%
Allowance for credit losses to loans		1.12	%		1.11	%		1.10	%		1.11	%		1.12	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	1,984		$	2,010		$	2,297		$	2,474		$	2,463
Credit loss expense (recovery) on off-balance sheet items		90			(26	)		(287	)		(177	)		11
Balance at end of period	$	2,074		$	1,984		$	2,010		$	2,297		$	2,474

Unused commitments to extend credit	$	782,587		$	739,975		$	795,391		$	792,769		$	813,960

⁽¹⁾Annualized

Corporate Developments
On October 24, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. Hanmi paid the dividend on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

Earnings Conference Call
Hanmi Bank will host its fourth quarter 2024 earnings conference call today, January 28, 2025, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 31 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	December 31,			September 30,			Percentage		December 31,			Percentage
	2024			2024			Change		2023			Change
Assets
Cash and due from banks	$	304,800		$	287,767		5.9	%	$	302,324		0.8	%
Securities available for sale, at fair value		905,798			908,921		-0.3	%		865,739		4.6	%
Loans held for sale, at the lower of cost or fair value		8,579			54,336		-84.2	%		12,013		-28.6	%
Loans receivable, net of allowance for credit losses		6,181,230			6,188,581		-0.1	%		6,112,972		1.1	%
Accrued interest receivable		22,937			21,955		4.5	%		23,371		-1.9	%
Premises and equipment, net		21,404			21,371		0.2	%		21,959		-2.5	%
Customers’ liability on acceptances		1,226			67		N/M			625		96.2	%
Servicing assets		6,457			6,683		-3.4	%		7,070		-8.7	%
Goodwill and other intangible assets, net		11,031			11,031		0.0	%		11,099		-0.6	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385		0.0	%		16,385		0.0	%
Bank-owned life insurance		57,168			56,851		0.6	%		56,335		1.5	%
Prepaid expenses and other assets		140,910			138,351		1.8	%		140,449		0.3	%
Total assets	$	7,677,925		$	7,712,299		-0.4	%	$	7,570,341		1.4	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,096,634		$	2,051,790		2.2	%	$	2,003,596		4.6	%
Interest-bearing		4,339,142			4,351,431		-0.3	%		4,276,978		1.5	%
Total deposits		6,435,776			6,403,221		0.5	%		6,280,574		2.5	%
Accrued interest payable		34,824			52,613		-33.8	%		39,306		-11.4	%
Bank’s liability on acceptances		1,226			67		N/M			625		96.2	%
Borrowings		262,500			300,000		-12.5	%		325,000		-19.2	%
Subordinated debentures		130,638			130,478		0.1	%		130,012		0.5	%
Accrued expenses and other liabilities		80,787			89,211		-9.4	%		92,933		-13.1	%
Total liabilities		6,945,751			6,975,590		-0.4	%		6,868,450		1.1	%

Stockholders’ equity:
Common stock		34			34		0.0	%		34		0.0	%
Additional paid-in capital		591,069			589,567		0.3	%		586,912		0.7	%
Accumulated other comprehensive income		(70,723	)		(55,140	)	-28.3	%		(71,928	)	1.7	%
Retained earnings		350,869			340,718		3.0	%		319,048		10.0	%
Less treasury stock		(139,075	)		(138,470	)	-0.4	%		(132,175	)	-5.2	%
Total stockholders’ equity		732,174			736,709		-0.6	%		701,891		4.3	%
Total liabilities and stockholders’ equity	$	7,677,925		$	7,712,299		-0.4	%	$	7,570,341		1.4	%

N/M – Not meaningful.

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	December 31,		September 30,		Percentage		December 31,			Percentage
	2024		2024		Change		2023			Change
Interest and dividend income:
Interest and fees on loans receivable	$	91,545	$	92,182	-0.7	%	$	89,922		1.8	%
Interest on securities		5,866		5,523	6.2	%		4,583		28.0	%
Dividends on FHLB stock		360		356	1.1	%		341		5.6	%
Interest on deposits in other banks		2,342		2,356	-0.6	%		2,337		0.2	%
Total interest and dividend income		100,113		100,417	-0.3	%		97,183		3.0	%
Interest expense:
Interest on deposits		43,406		47,153	-7.9	%		40,277		7.8	%
Interest on borrowings		1,634		1,561	4.7	%		2,112		-22.6	%
Interest on subordinated debentures		1,624		1,652	-1.7	%		1,654		-1.8	%
Total interest expense		46,664		50,366	-7.4	%		44,043		6.0	%
Net interest income before credit loss expense		53,449		50,051	6.8	%		53,140		0.6	%
Credit loss expense		945		2,286	-58.7	%		(2,870	)	132.9	%
Net interest income after credit loss expense		52,504		47,765	9.9	%		56,010		-6.3	%
Noninterest income:
Service charges on deposit accounts		2,192		2,311	-5.1	%		2,391		-8.3	%
Trade finance and other service charges and fees		1,364		1,254	8.8	%		1,245		9.6	%
Gain on sale of Small Business Administration (“SBA”) loans		1,443		1,544	-6.5	%		1,448		-0.3	%
Other operating income		2,358		3,329	-29.2	%		1,596		47.7	%
Total noninterest income		7,357		8,438	-12.8	%		6,680		10.1	%
Noninterest expense:
Salaries and employee benefits		20,498		20,851	-1.7	%		20,062		2.2	%
Occupancy and equipment		4,503		4,499	0.1	%		4,604		-2.2	%
Data processing		3,800		3,839	-1.0	%		3,487		9.0	%
Professional fees		1,821		1,492	22.1	%		1,977		-7.9	%
Supplies and communications		551		538	2.4	%		613		-10.1	%
Advertising and promotion		821		631	30.1	%		990		-17.1	%
Other operating expenses		2,540		3,230	-21.4	%		3,478		-27.0	%
Total noninterest expense		34,534		35,080	-1.6	%		35,211		-1.9	%
Income before tax		25,327		21,123	19.9	%		27,479		-7.8	%
Income tax expense		7,632		6,231	22.5	%		8,846		-13.7	%
Net income	$	17,695	$	14,892	18.8	%	$	18,633		-5.0	%

Basic earnings per share:	$	0.59	$	0.49			$	0.61
Diluted earnings per share:	$	0.58	$	0.49			$	0.61

Weighted-average shares outstanding:
Basic		29,933,644		29,968,004				30,189,578
Diluted		30,011,773		30,033,679				30,251,315
Common shares outstanding		30,195,999		30,196,755				30,368,655

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Twelve Months Ended
	December 31,		December 31,		Percentage
	2024		2023		Change
Interest and dividend income:
Interest and fees on loans receivable	$	366,153	$	339,811		7.8	%
Interest on securities		21,583		16,938		27.4	%
Dividends on FHLB stock		1,436		1,229		16.8	%
Interest on deposits in other banks		9,611		11,350		-15.3	%
Total interest and dividend income		398,783		369,328		8.0	%
Interest expense:
Interest on deposits		182,692		134,708		35.6	%
Interest on borrowings		6,746		6,867		-1.8	%
Interest on subordinated debentures		6,571		6,482		1.4	%
Total interest expense		196,009		148,057		32.4	%
Net interest income before credit loss expense		202,774		221,271		-8.4	%
Credit loss expense		4,419		4,342		1.8	%
Net interest income after credit loss expense		198,355		216,929		-8.6	%
Noninterest income:
Service charges on deposit accounts		9,381		10,147		-7.5	%
Trade finance and other service charges and fees		5,309		4,832		9.9	%
Gain on sale of Small Business Administration (“SBA”) loans		6,112		5,701		7.2	%
Other operating income		10,783		13,499		-20.1	%
Total noninterest income		31,585		34,179		-7.6	%
Noninterest expense:
Salaries and employee benefits		83,368		81,398		2.4	%
Occupancy and equipment		18,146		18,340		-1.1	%
Data processing		14,876		13,695		8.6	%
Professional fees		6,956		6,255		11.2	%
Supplies and communications		2,261		2,479		-8.8	%
Advertising and promotion		3,028		3,105		-2.5	%
Other operating expenses		12,700		11,255		12.8	%
Total noninterest expense		141,335		136,527		3.5	%
Income before tax		88,605		114,581		-22.7	%
Income tax expense		26,404		34,540		-23.6	%
Net income	$	62,201	$	80,041		-22.3	%

Basic earnings per share:	$	2.06	$	2.63
Diluted earnings per share:	$	2.05	$	2.62

Weighted-average shares outstanding:
Basic		30,019,815		30,269,740
Diluted		30,102,336		30,330,258
Common shares outstanding		30,195,999		30,368,655

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	December 31, 2024								September 30, 2024								December 31, 2023
				Interest		Average						Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,103,264		$	91,545		5.97	%	$	6,112,324		$	92,182		6.00	%	$	6,071,644		$	89,922		5.88	%
Securities ⁽²⁾		998,313			5,866		2.38	%		986,041			5,523		2.27	%		961,551			4,582		1.93	%
FHLB stock		16,385			360		8.75	%		16,385			356		8.65	%		16,385			341		8.25	%
Interest-bearing deposits in other banks		204,408			2,342		4.56	%		183,027			2,356		5.12	%		181,140			2,338		5.12	%
Total interest-earning assets		7,322,370			100,113		5.45	%		7,297,777			100,417		5.48	%		7,230,720			97,183		5.34	%

Noninterest-earning assets:
Cash and due from banks		54,678								54,843								61,146
Allowance for credit losses		(69,291	)							(67,906	)							(68,319	)
Other assets		246,744								251,421								251,660

Total assets	$	7,554,501							$	7,536,135							$	7,475,207

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,784		$	26		0.13	%	$	83,647		$	31		0.15	%	$	86,679		$	29		0.13	%
Money market and savings		1,934,540			16,564		3.41	%		1,885,799			17,863		3.77	%		1,669,973			14,379		3.42	%
Time deposits		2,346,363			26,816		4.55	%		2,427,737			29,259		4.79	%		2,417,803			25,869		4.24	%
Total interest-bearing deposits		4,360,687			43,406		3.96	%		4,397,183			47,153		4.27	%		4,174,455			40,277		3.83	%
Borrowings		141,604			1,634		4.59	%		143,479			1,561		4.33	%		205,951			2,113		4.07	%
Subordinated debentures		130,567			1,624		4.97	%		130,403			1,652		5.07	%		129,933			1,653		5.09	%
Total interest-bearing liabilities		4,632,858			46,664		4.01	%		4,671,065			50,366		4.29	%		4,510,339			44,043		3.88	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,967,789								1,908,833								2,025,212
Other liabilities		162,064								171,987								177,321
Stockholders’ equity		791,790								784,250								762,335

Total liabilities and stockholders’ equity	$	7,554,501							$	7,536,135							$	7,475,207

Net interest income				$	53,449							$	50,051							$	53,140

Cost of deposits							2.73	%							2.97	%							2.58	%
Net interest spread (taxable equivalent basis)							1.44	%							1.19	%							1.47	%
Net interest margin (taxable equivalent basis)							2.91	%							2.74	%							2.92	%



⁽¹⁾ Includes average loans held for sale
⁽²⁾ Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Twelve Months Ended
	December 31, 2024								December 31, 2023
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,110,713		$	366,153		5.99	%	$	5,968,339		$	339,811		5.69	%
Securities ⁽²⁾		983,434			21,583		2.22	%		967,231			16,938		1.78	%
FHLB stock		16,385			1,437		8.76	%		16,385			1,229		7.50	%
Interest-bearing deposits in other banks		192,342			9,610		5.00	%		230,835			11,350		4.92	%
Total interest-earning assets		7,302,874			398,783		5.46	%		7,182,790			369,328		5.15	%

Noninterest-earning assets:
Cash and due from banks		55,830								62,049
Allowance for credit losses		(68,553	)							(70,501	)
Other assets		248,820								240,779

Total assets	$	7,538,971							$	7,415,117

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	83,807		$	119		0.14	%	$	97,388		$	117		0.12	%
Money market and savings		1,870,541			68,304		3.65	%		1,547,911			44,066		2.85	%
Time deposits		2,433,516			114,269		4.70	%		2,371,520			90,525		3.82	%
Total interest-bearing deposits		4,387,864			182,692		4.16	%		4,016,819			134,708		3.35	%
Borrowings		154,193			6,746		4.38	%		197,409			6,867		3.48	%
Subordinated debentures		130,325			6,571		5.04	%		129,708			6,482		5.00	%
Total interest-bearing liabilities		4,672,382			196,009		4.20	%		4,343,936			148,057		3.41	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,920,492								2,173,813
Other liabilities		165,288								149,460
Stockholders’ equity		780,809								747,908

Total liabilities and stockholders’ equity	$	7,538,971							$	7,415,117

Net interest income				$	202,774							$	221,271

Cost of deposits							2.90	%							2.18	%
Net interest spread (taxable equivalent basis)							1.27	%							1.74	%
Net interest margin (taxable equivalent basis)							2.78	%							3.08	%


⁽¹⁾ Includes average loans held for sale
⁽²⁾ Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)

	December 31,			September 30,			June 30,			March 31,			December 31,
Hanmi Financial Corporation	2024			2024			2024			2024			2023
Assets	$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,048	)		(11,074	)		(11,099	)
Tangible assets	$	7,666,894		$	7,701,268		$	7,575,299		$	7,500,972		$	7,559,242

Stockholders’ equity ⁽¹⁾	$	732,174		$	736,709		$	707,059		$	703,100		$	701,891
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,048	)		(11,074	)		(11,099	)
Tangible stockholders’ equity ⁽¹⁾	$	721,143		$	725,678		$	696,011		$	692,026		$	690,792

Stockholders’ equity to assets		9.54	%		9.55	%		9.32	%		9.36	%		9.27	%
Tangible common equity to tangible assets ⁽¹⁾		9.41	%		9.42	%		9.19	%		9.23	%		9.14	%

Common shares outstanding		30,195,999			30,196,755			30,272,110			30,276,358			30,368,655
Tangible common equity per common share	$	23.88		$	24.03		$	22.99		$	22.86		$	22.75


⁽¹⁾There were no preferred shares outstanding at the periods indicated.

The MIL Network –

January 29, 2025

MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three Months and Year Ended December 31, 2024 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and twelve months ended December 31, 2024. For the three months ended December 31, 2024, the Company reported net income of $3.3 million, or $0.16 per diluted share, compared to net income of $2.5 million, or $0.12 per diluted share, for the three months ended December 31, 2023. On a linked quarter basis, net income was $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, as compared to net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024. For the twelve months ended December 31, 2024, net income was $11.7 million, or $0.56 per diluted share, compared to net income of $15.1 million, or $0.70 per diluted share, for the twelve months ended December 31, 2023.

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about February 26, 2025 to shareholders of record on February 12, 2025.

James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the fourth quarter of 2024. Our strong, diversified, core deposit base was integral in effectively managing our funding costs over the last two years during a rising rate environment. Our disciplined approach to managing our funding costs resulted in an increase in net interest income for the second consecutive quarter in 2024.

As we continue to manage the balance sheet, we remain focused on identifying initiatives to mitigate top line pressures and improve efficiencies over the Company’s long-term. In 2024, total deposits increased $118.9 million, or 5.6%, and core deposits represented 68.9% of total deposits as compared to 2023. The loan-to-deposit ratio decreased to 91.5%. We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return.

Our asset quality remains strong, with nonaccrual loans at 0.26% of total loans, and classified loans, which we define as special mention and substandard loans, at 1.9% of total loans as of December 31, 2024. Our loan portfolio continues to perform well and we continue to proactively identify and manage credit risk within the loan portfolio, consistent with our prudent credit culture.

The Company is considered to be well-capitalized and we remain disciplined in our capital management strategies. During the twelve months ended December 31, 2024, we repurchased 934,282 shares of the Company’s common stock at an average price per share of $7.94. We continue to believe that buying back shares represents a prudent use of the Company’s capital. We are pleased to be able to continue to return value to shareholders through share repurchases. Although the banking environment has been challenged, our capital management strategies have been critical to sustaining growth in book value per share, which increased to $11.30, while tangible book value per share, a non-GAAP financial measure, increased $0.33, or 3.2%, to $10.63 at December 31, 2024.”

Hagan concluded, “Over the last few years, the banking industry as a whole experienced challenging headwinds, however, our team remains focused on serving our customers and supporting our community. Our commitment to strong capital and liquidity levels gives us a strong foundation to take advantage of opportunities in the markets we serve and to enhance shareholder value in the long term.”

Key Highlights:

Loans and Deposits

Total loans increased $42.9 million, or 2.1%, from $2.0 billion at December 31, 2023 to $2.1 billion at December 31, 2024. Residential real estate loans, including home equity loans, increased $53.5 million, or 7.4%, commercial real estate loans decreased $4.0 million, or 0.4%, commercial and industrial loans decreased $5.7 million, or 2.7%, and consumer loans decreased $1.1 million, or 19.8%.

Total deposits increased $118.9 million, or 5.6%, from $2.1 billion at December 31, 2023 to $2.3 billion at December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $26.7 million, or 1.7%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.6 billion, or 68.9% of total deposits, at December 31, 2024. Time deposits increased $92.2 million, or 15.1%, from $611.4 million at December 31, 2023 to $703.6 million at December 31, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024 and at December 31, 2023. The loan-to-deposit ratio decreased from 94.6% at December 31, 2023 to 91.5% at December 31, 2024.

Liquidity

The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At December 31, 2024, the Company had $1.1 billion in immediately available liquidity, compared to $643.6 million in uninsured deposits, or 28.4% of total deposits, representing a coverage ratio of 171.8%.

Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep account or a reciprocal time deposit through the Certificate of Deposit Account Registry System. IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

Allowance for Credit Losses and Credit Quality

At December 31, 2024, the allowance for credit losses was $19.5 million, or 0.94% of total loans and 362.9% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans, at December 31, 2023. At December 31, 2024, nonperforming loans totaled $5.4 million, or 0.26% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total delinquent loans decreased $1.0 million, or 16.7%, from $6.0 million, or 0.30% of total loans, at December 31, 2023 to $5.0 million, or 0.24% of total loans, at December 31, 2024. At December 31, 2024 and December 31, 2023, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin was 2.41% for the three months ended December 31, 2024, compared to 2.40% for the three months ended September 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.43% for the three months ended December 31, 2024, compared to 2.42% for the three months ended September 30, 2024.

Stock Repurchase Program

On May 22, 2024, the Board of Directors authorized a new stock repurchase plan (the “2024 Plan”) under which the Company may repurchase up to 1.0 million shares, or approximately 4.6%, of the Company’s then-outstanding shares of common stock.

During the three months ended December 31, 2024, the Company repurchased 220,000 shares of common stock under the 2024 Plan, with an average price per share of $9.00. During the twelve months ended December 31, 2024, the Company repurchased 934,282 shares of common stock under the 2024 Plan and the previously existing share repurchase plan, as applicable, with an average price per share of $7.94. As of December 31, 2024, there were 472,318 shares of common stock available for repurchase under the 2024 Plan.

The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2024 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

Book Value and Tangible Book Value

The Company’s book value per share was $11.30 at December 31, 2024, compared to $10.96 at December 31, 2023, while tangible book value per share, a non-GAAP financial measure, increased $0.33, or 3.2%, from $10.30 at December 31, 2023 to $10.63 at December 31, 2024. See pages 20-22 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended December 31, 2024 Compared to the Three Months Ended September 30, 2024

The Company reported an increase in net income of $1.4 million, or 72.7%, from $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, to $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024. Net interest income increased $545,000, or 3.7%, the provision for credit losses decreased $1.7 million, non-interest income increased $113,000, or 3.6%, and non-interest expense increased $520,000, or 3.6%. Return on average assets and return on average equity were 0.49% and 5.48%, respectively, for the three months ended December 31, 2024, compared to 0.29% and 3.19%, respectively, for the three months ended September 30, 2024.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $545,000, or 3.7%, to $15.3 million for the three months ended December 31, 2024, from $14.7 million for the three months ended September 30, 2024. The increase in net interest income was primarily due to an increase in interest income of $746,000, or 2.7%, partially offset by an increase in interest expense of $201,000, or 1.5%.

The net interest margin was 2.41% for the three months ended December 31, 2024, compared to 2.40% for the three months ended September 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.43% for the three months ended December 31, 2024, compared to 2.42% for the three months ended September 30, 2024. During the three months ended December 31, 2024 and during the three months ended September 30, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of one basis point for the three months ended December 31, 2024, compared to an increase of seven basis points during the three months ended September 30, 2024. Excluding the interest income attributed to the fair value hedge, the net interest margin increased seven basis points from 2.33% for the three months ended September 30, 2024 to 2.40% for the three months ended December 31, 2024, respectively. The fair value hedge matured in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.52% for the three months ended December 31, 2024, compared to 4.54% for the three months ended September 30, 2024. Excluding the impact of the fair value hedge discussed above, the average yield on interest-earnings assets, without the impact of tax-equivalent adjustments, increased four basis points to 4.51% during the three months ended December 31, 2024, compared to 4.47% during the three months ended September 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the three months ended December 31, 2024, compared to 4.90% for the three months ended September 30, 2024. Excluding the impact of the fair value hedge discussed above, the average yield on loans, without the impact of tax-equivalent adjustments, increased two basis points to 4.84% during the three months ended December 31, 2024, compared to 4.82% during the three months ended September 30, 2024. During the three months ended December 31, 2024, average interest-earning assets increased $75.8 million, or 3.1% to $2.5 billion, primarily due to an increase in average loans of $24.2 million, or 1.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $44.8 million, or 139.7%, and an increase in average securities of $6.8 million, or 1.9%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased four basis points from 2.24% for the three months ended September 30, 2024 to 2.20% for the three months ended December 31, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased five basis points to 0.98% for the three months ended December 31, 2024, from 0.93% for the three months ended September 30, 2024. The average cost of time deposits decreased 13 basis points from 4.44% for the three months ended September 30, 2024, to 4.31% for the three months ended December 31, 2024. The average cost of borrowings, including subordinated debt, decreased one basis point from 5.05% for the three months ended September 30, 2024 to 5.04% for the three months ended December 31, 2024. Average demand deposits, an interest-free source of funds, increased $20.0 million, or 3.6%, from $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024, to $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended December 31, 2024, the Company recorded a reversal of credit losses of $762,000, compared to a provision for credit losses of $941,000 during the three months ended September 30, 2024. The provision for credit losses includes a reversal of credit losses on loans of $553,000 and a reversal of credit losses on unfunded loan commitments of $209,000. The reversal of credit losses on loans was due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology as well as changes in the loan portfolio mix. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. The decrease in reserves on unfunded loan commitments was due to an decrease in commercial real estate unfunded loan commitments of $19.5 million, or 10.0%, from $195.3 million at September 30, 2024 to $175.8 million at December 31, 2024. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended December 31, 2024, the Company recorded net recoveries of $128,000, compared to net charge-offs of $98,000 for the three months ended September 30, 2024.

Non-Interest Income

On a sequential quarter basis, non-interest income increased $113,000, or 3.6%, to $3.3 million for the three months ended December 31, 2024, from $3.1 million for the three months ended September 30, 2024. During the three months ended December 31, 2024, service charges and fees on deposits decreased $40,000, or 1.7%, to $2.3 million from the three months ended September 30, 2024. Income from bank-owned life insurance (“BOLI”) increased $16,000, or 3.4%, from the three months ended September 30, 2024 to $486,000 for the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported $187,000 in other income from loan-level swap fees on commercial loans, compared to $74,000 during the three months ended September 30, 2024. During the three months ended December 31, 2024, the Company reported a loss of $11,000 from mortgage banking activities, compared to income from mortgage banking activities of $246,000, during the three months ended September 30, 2024. During the three months ended December 31, 2024, the Company reported unrealized losses on marketable equity securities of $9,000, compared to unrealized gains of $10,000, during the three months ended September 30, 2024. During the three months ended December 31, 2024, the Company reported gains on non-marketable equity investments of $300,000 and did not have comparable income during the three months ended September 30, 2024.

Non-Interest Expense

For the three months ended December 31, 2024, non-interest expense increased $520,000, or 3.6%, to $14.9 million from $14.4 million for the three months ended September 30, 2024. Salaries and related benefits increased $317,000, or 3.9%, primarily related to incentive compensation accrual adjustments due to revised payout estimates and an increase in health insurance benefits. FDIC insurance expense increased $51,000, or 15.1%, occupancy expense increased $39,000, or 3.2%, primarily due to snow removal costs of $47,000, advertising expense increased $39,000, or 14.4%, data processing expense increased $31,000, or 3.6%, software expenses increased $30,000, or 4.9%, furniture and equipment expense increased $22,000, or 4.6%, and other non-interest expense increased $116,000, or 8.8%. These increases were partially offset by a decrease in professional fees of $69,000, or 12.8%, and a decrease in debit card processing and ATM network costs of $56,000, or 8.6%.

For the three months ended December 31, 2024 and the three months ended September 30, 2024, the efficiency ratio was 80.6%. For the three months ended December 31, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.9% compared to 80.7% for the three months ended September 30, 2024. The increase in the adjusted efficiency ratio was driven by higher expenses during the three months ended December 31, 2024. See pages 20-22 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended December 31, 2024 was $1.1 million, with an effective tax rate of 24.6%, compared to $618,000, with an effective tax rate of 24.5%, for the three months ended September 30, 2024.

Net Income for the Three Months Ended December 31, 2024 Compared to the Three Months Ended December 31, 2023

The Company reported net income of $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, compared to net income of $2.5 million, or $0.12 per diluted share, for the three months ended December 31, 2023. Net interest income decreased $903,000, or 5.6%, provision for credit losses decreased $1.2 million, non-interest income increased $540,000, or 19.9%, and non-interest expense increased $141,000, or 1.0%, during the same period. Return on average assets and return on average equity were 0.49% and 5.48%, respectively, for the three months ended December 31, 2024, compared to 0.39% and 4.31%, respectively, for the three months ended December 31, 2023.

Net Interest Income and Net Interest Margin

Net interest income decreased $903,000, or 5.6%, to $15.3 million, for the three months ended December 31, 2024, from $16.2 million for the three months ended December 31, 2023. The decrease in net interest income was due to an increase in interest expense of $2.7 million, or 25.7%, partially offset by an increase in interest and dividend income of $1.8 million, or 6.8%. During the three months ended December 31, 2024 and the three months ended December 31, 2023, the Company had a fair value hedge which contributed $74,000 to interest income during the three months ended December 31, 2024, compared to $459,000 during the three months ended December 31, 2023. The fair value hedge matured in October of 2024. The increase in interest expense was a result of competitive pricing on deposits due to the continued high interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin was 2.41% for the three months ended December 31, 2024, compared to 2.64% for the three months ended December 31, 2023. The net interest margin, on a tax-equivalent basis, was 2.43% for the three months ended December 31, 2024, compared to 2.66% for the three months ended December 31, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended December 31, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of one basis point, compared to an increase of eight basis points during the three months ended December 31, 2023. The fair value hedge matured in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.52% for the three months ended December 31, 2024, compared to 4.38% for the three months ended December 31, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the three months ended December 31, 2024, compared to 4.71% for the three months ended December 31, 2023. During the three months ended December 31, 2024, average interest-earning assets increased $89.9 million, or 3.7%, to $2.5 billion, primarily due to an increase in average loans of $45.7 million, or 2.3%, an increase in average short-term investments, consisting of cash and cash equivalents, of $34.0 million, or 79.3%, an increase in average securities of $6.4 million, or 1.8%, and an increase in average other investments of $3.8 million, or 31.4%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 39 basis points from 1.81% for the three months ended December 31, 2023, to 2.20% for the three months ended December 31, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 22 basis points to 0.98% for the three months ended December 31, 2024, from 0.76% for the three months ended December 31, 2023. The average cost of time deposits increased 53 basis points from 3.78% for the three months ended December 31, 2023 to 4.31% for the three months ended December 31, 2024. The average cost of borrowings, including subordinated debt, increased 21 basis points from 4.83% for the three months ended December 31, 2023 to 5.04% for the three months ended December 31, 2024. Average demand deposits, an interest-free source of funds, decreased $9.6 million, or 1.6%, from $588.7 million, or 27.0% of total average deposits, for the three months ended December 31, 2023, to $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended December 31, 2024, the Company recorded a reversal of credit losses of $762,000, compared to a provision for credit losses of $486,000 during the three months ended December 31, 2023. The decrease was primarily due to a decrease in unfunded commercial real estate loan commitments, as well as changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $128,000 for the three months ended December 31, 2024, as compared to net charge-offs of $136,000 for the three months ended December 31, 2023.

Non-Interest Income

Non-interest income increased $540,000, or 19.9%, from $2.7 million for the three months ended December 31, 2023, to $3.3 million for the three months ended December 31, 2024. Service charges and fees on deposits increased $18,000, or 0.8%, and income from BOLI increased $54,000, or 12.5%, from the three months ended December 31, 2023 to the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported $187,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended December 31, 2023. During the three months ended December 31, 2024, the Company reported a loss of $11,000 from mortgage banking activities and did not have comparable loss during the three months ended December 31, 2023. During the three months ended December 31, 2024 and the three months ended December 31, 2023, the Company reported $9,000 and $1,000, respectively, in unrealized losses on marketable equity securities. During the three months ended December 31, 2024, the Company reported a gain on non-marketable equity investments of $300,000 and did not have comparable non-interest income during the three months ended December 31, 2023.

Non-Interest Expense

For the three months ended December 31, 2024, non-interest expense increased $141,000, or 1.0%, to $14.9 million from $14.8 million for the three months ended December 31, 2023. During the three months ended December 31, 2023, the Company reached an agreement-in-principle to settle purported class action lawsuits concerning the Company’s deposit products and related disclosures, specifically involving overdraft fees and insufficient funds fees. This agreement-in-principle reflects our business decision to avoid the costs, uncertainties and distractions of further litigation. Excluding the legal settlement accrual of $510,000 during the three months ended December 31, 2023, non-interest expense increased $651,000, or 4.6%, from $14.3 million for the three months ended December 31, 2023 to $14.9 million for the three months ended December 31, 2024.

Salaries and related benefits increased $690,000, or 8.9%, to $8.4 million, primarily related to incentive compensation accrual adjustments due to revised payout estimates and annual merit increases. Data processing expense increased $112,000, or 14.2%, occupancy expense increased $58,000, or 4.8%, FDIC insurance expense increased $51,000, or 15.1%, software related expenses increased $44,000, or 7.4%, debit card processing and ATM network costs increased $34,000, or 6.0%, and furniture and equipment related expenses increased $11,000, or 2.2%. These increases were partially offset by a decrease in professional fees of $203,000, or 30.1%, a decrease in advertising expense of $67,000, or 17.8%, and a decrease in other non-interest expense of $589,000, or 29.1%. Excluding the $510,000 legal settlement accrual, other non-interest expense decreased $79,000, or 5.2%.

For the three months ended December 31, 2024, the efficiency ratio was 80.6%, compared to 78.3% for the three months ended December 31, 2023. For the three months ended December 31, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.9% compared to 78.3% for the three months ended December 31, 2023. The increase in the efficiency ratio and the non-GAAP adjusted efficiency ratio was primarily driven by lower revenues during the three months ended December 31, 2024, compared to the three months ended December 31, 2023. See pages 20-22 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

For the three months ended December 31, 2024, income tax expense was $1.1 million, with an effective tax rate of 24.6%, compared to $1.1 million, with an effective tax rate of 30.6%, for the three months ended December 31, 2023. For the three months ended December 31, 2023, the effective tax rate was negatively impacted by discrete items totaling $285,000.

Net Income for the Twelve Months Ended December 31, 2024 Compared to the Twelve Months Ended December 31, 2023

For the twelve months ended December 31, 2024, the Company reported net income of $11.7 million, or $0.56 per diluted share, compared to $15.1 million, or $0.70 per diluted share, for the twelve months ended December 31, 2023. Net interest income decreased $8.1 million, or 11.9%, provision for credit losses decreased $1.5 million, non-interest income increased $2.0 million, or 18.4%, and non-interest expense increased $78,000, or 0.1%, during the same period in 2023. Return on average assets and return on average equity were 0.45% and 4.93% for the twelve months ended December 31, 2024, respectively, compared to 0.59% and 6.47% for the twelve months ended December 31, 2023, respectively.

Net Interest Income and Net Interest Margin

During the twelve months ended December 31, 2024, net interest income decreased $8.1 million, or 11.9%, to $59.8 million, compared to $67.9 million for the twelve months ended December 31, 2023. The decrease in net interest income was primarily due to an increase in interest expense of $16.8 million, or 50.6%, partially offset by an increase in interest and dividend income of $8.7 million, or 8.6%.

The net interest margin for the twelve months ended December 31, 2024 was 2.45%, compared to 2.82% for the twelve months ended December 31, 2023. The net interest margin, on a tax-equivalent basis, was 2.47% for the twelve months ended December 31, 2024, compared to 2.84% for the twelve months ended December 31, 2023.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 30 basis points from 4.20% for the twelve months ended December 31, 2023 to 4.50% for the twelve months ended December 31, 2024. The average yield on loans, without the impact of tax-equivalent adjustments, increased 32 basis points from 4.54% for the twelve months ended December 31, 2023 to 4.86% for the twelve months ended December 31, 2024. During the twelve months ended December 31, 2024, average interest-earning assets increased $33.5 million, or 1.4%, to $2.4 billion, compared to the twelve months ended December 31, 2023, primarily due to an increase in average loans of $29.0 million, or 1.4%, an increase in average short-term investments, consisting of cash and cash equivalents, of $12.8 million, or 62.5%, and an increase in average other investments of $2.2 million, or 18.1%, partially offset by a decrease in average securities of $10.6 million, or 2.9%.

During the twelve months ended December 31, 2024, the average cost of funds, including non-interest-bearing demand accounts and borrowings, increased 70 basis points from 1.44% for the twelve months ended December 31, 2023 to 2.14%. For the twelve months ended December 31, 2024, the average cost of core deposits, including non-interest-bearing demand deposits, increased 24 basis points from 0.65% for the twelve months ended December 31, 2023, to 0.89%. The average cost of time deposits increased 129 basis points from 3.03% for the twelve months ended December 31, 2023 to 4.32% for the twelve months ended December 31, 2024. The average cost of borrowings, which include borrowings and subordinated debt, increased 16 basis points from 4.84% for the twelve months ended December 31, 2023 to 5.00% for the twelve months ended December 31, 2024.

For the twelve months ended December 31, 2024, average demand deposits, an interest-free source of funds, decreased $41.4 million, or 6.9%, from $602.7 million, or 27.8% of total average deposits, for the twelve months ended December 31, 2023, to $561.3 million, or 25.8% of total average deposits.

Provision for (Reversal of) Credit Losses

During the twelve months ended December 31, 2024, the Company recorded a reversal of credit losses of $665,000, compared to a provision for credit losses of $872,000 during the twelve months ended December 31, 2023. The decrease in reserves was primarily due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. During the twelve months ended December 31, 2024, the Company recorded net recoveries of $87,000, compared to net charge-offs of $2.0 million for the twelve months ended December 31, 2023. The charge-offs during the twelve months ended December 31, 2023 were related to one commercial relationship acquired in October 2016 from Chicopee Bancorp, Inc. Specifically, the Company recorded a $1.9 million charge-off on the acquired commercial relationship, which represented the non-accretable credit mark that was required to be grossed-up to the loan’s amortized cost basis with a corresponding increase to the allowance for credit losses under the CECL implementation.

The decrease in the provision for credit losses was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

Non-Interest Income

For the twelve months ended December 31, 2024, non-interest income increased $2.0 million, or 18.4%, from $10.9 million for the twelve months ended December 31, 2023 to $12.9 million. During the twelve months ended December 31, 2023, the Company recorded a non-recurring final termination expense of $1.1 million related to the defined benefit pension plan termination. During the twelve months ended, December 31, 2023, the Company also recorded a non-taxable gain of $778,000 on BOLI death benefits and did not have a comparable gain during the twelve months ended December 31, 2024. Excluding the defined benefit pension plan termination expense and the BOLI death benefit, non-interest income increased $1.6 million, or 14.6%.

During the twelve months ended December 31, 2024, service charges and fees increased $346,000, or 3.9%, and income from BOLI increased $91,000, or 5.0%, from $1.8 million for the twelve months ended December 31, 2023 to $1.9 million. During the twelve months ended December 31, 2024, the Company recorded other income from loan-level swap fees on commercial loans of $261,000 and did not have comparable income during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2024, the Company reported a gain of $1.3 million on non-marketable equity investments, compared to a gain of $590,000 during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2024, the Company reported a loss on the disposal of premises and equipment of $6,000, compared to a loss of $3,000 during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2023, the Company also reported unrealized losses on marketable equity securities of $1,000, compared to unrealized gains on marketable equity securities of $13,000 during the twelve months ended December 31, 2024.

Non-Interest Expense

For the twelve months ended December 31, 2024, non-interest expense increased $78,000, or 0.1%, to $58.4 million from the twelve months ended December 31, 2023. During the twelve months ended December 31, 2023, the Company reached an agreement-in-principle to settle purported class action lawsuits concerning the Company’s deposit products and related disclosures, specifically involving overdraft fees and insufficient funds fees. This agreement-in-principle reflects our business decision to avoid the costs, uncertainties and distractions of further litigation. Excluding the legal settlement accrual of $510,000, non-interest expense increased $588,000, or 1.0%, from $57.8 million for the twelve months ended December 31, 2023 to $58.4 million for the twelve months ended December 31, 2024.

During the same period, salaries and related benefits increased $472,000, or 1.5%, software expenses increased $208,000, or 9.0%, data processing expense increased $320,000, or 10.1%, debit card processing and ATM network costs increased $298,000, or 13.9%, occupancy expense increased $146,000, or 3.0%, due to higher repair and maintenance costs, real estate taxes, and depreciation expense. FDIC insurance expense increased $139,000, or 10.5%. These increases were partially offset by a decrease in professional fees of $571,000, or 20.9%, which is comprised of legal fees, audit and other professional fees. During the three months ended December 31, 2023, professional fees included legal fees related to the settlement of the purported class action lawsuits. Advertising expense decreased $226,000, or 15.1%, and other non-interest expense, excluding the $510,000 legal settlement accrual, decreased $199,000, or 3.5%.

For the twelve months ended December 31, 2024, the efficiency ratio was 80.4%, compared to 74.0% for the twelve months ended December 31, 2023. For the twelve months ended December 31, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.8%, compared to 74.3% for the twelve months ended December 31, 2023. See pages 20-22 for the related efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

For the twelve months ended December 31, 2024, income tax expense was $3.3 million, with an effective tax rate of 22.0%, compared to $4.5 million, with an effective tax rate of 23.1%, for twelve months ended December 31, 2023. The decrease in income tax expense for the twelve months ended December 31, 2024 compared to the twelve months December 31, 2023 was due to lower income before taxes in 2024.

Balance Sheet

At December 31, 2024, total assets were $2.7 billion, an increase of $88.5 million, or 3.5%, from December 31, 2023. The increase in total assets was primarily due to an increase in total loans of $42.9 million, or 2.1%, an increase in cash and cash equivalents of $37.6 million, or 130.4%, and an increase in investment securities of $5.5 million, or 1.5%.

Investments

At December 31, 2024, the investment securities portfolio totaled $366.1 million, or 13.8% of total assets, compared to $360.7 million, or 14.1% of total assets, at December 31, 2023. At December 31, 2024, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $23.6 million, or 17.2%, from $137.1 million at December 31, 2023 to $160.7 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $18.4 million, or 8.2%, from $223.4 million at December 31, 2023 to $205.0 million at December 31, 2024.

At December 31, 2024, the Company reported unrealized losses on the available-for-sale securities portfolio of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $29.2 million, or 17.5% of the amortized cost basis of the available-for-sale securities at December 31, 2023. At December 31, 2024, the Company reported unrealized losses on the held-to-maturity securities portfolio of $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $35.7 million, or 16.0% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2023.

The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $4.6 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At December 31, 2024 and December 31, 2023, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which support’s the Bank’s objective to provide liquidity.

Total Loans

Total loans increased $42.9 million, or 2.1%, from December 31, 2023, to $2.1 billion at December 31, 2024. The increase in total loans was due to an increase in residential real estate loans, including home equity loans, of $53.5 million, or 7.4%, partially offset by a decrease in commercial real estate loans of $4.0 million, or 0.4%, a decrease in commercial and industrial loans of $5.7 million, or 2.7% and a decrease in consumer loans of $1.1 million, or 19.8%. During the twelve months ended December 31, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market with servicing retained.

The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

	December 31, 2024		December 31, 2023
	(Dollars in thousands)

Commercial real estate loans:
Non-owner occupied	$	880,828	$	881,643
Owner-occupied		194,904		198,108
Total commercial real estate loans		1,075,732		1,079,751

Residential real estate loans:
Residential		653,802		612,315
Home equity		121,857		109,839
Total residential real estate loans		775,659		722,154

Commercial and industrial loans		211,656		217,447

Consumer loans		4,391		5,472
Total gross loans		2,067,438		2,024,824
Unamortized premiums and net deferred loans fees and costs		2,751		2,493
Total loans	$	2,070,189	$	2,027,317

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $5.0 million, or 0.24% of total loans, at December 31, 2024, compared to $6.0 million, or 0.30% of total loans at December 31, 2023. At December 31, 2024, nonperforming loans totaled $5.4 million, or 0.26% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. At December 31, 2024 and December 31, 2023, there were no loans 90 or more days past due and still accruing interest. Total nonperforming assets totaled $5.4 million, or 0.20% of total assets, at December 31, 2024, compared to $6.4 million, or 0.25% of total assets, at December 31, 2023. At December 31, 2024 and December 31, 2023, the Company did not have any other real estate owned. At December 31, 2024, the allowance for credit losses was $19.5 million, or 0.94% of total loans and 362.9% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans, at December 31, 2023. Total classified loans, defined as special mention and substandard loans, decreased $1.1 million, or 2.8%, from $39.5 million, or 1.9% of total loans, at December 31, 2023 to $38.4 million, or 1.9% of total loans, at December 31, 2024. Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At December 31, 2024, the commercial real estate portfolio totaled $1.1 billion, and represented 52.0% of total loans. Of the $1.1 billion, $880.8 million, or 81.9%, was categorized as non-owner occupied commercial real estate and represented 325.2% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

Total deposits increased $118.9 million, or 5.6%, from $2.1 billion at December 31, 2023 to $2.3 billion at December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $26.7 million, or 1.7%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.6 billion, or 68.9% of total deposits, at December 31, 2024. Non-interest-bearing deposits decreased $14.0 million, or 2.4%, to $565.6 million, and represent 25.0% of total deposits, money market accounts increased $27.1 million, or 4.3%, to $661.5 million, savings accounts decreased $5.8 million, or 3.1%, to $181.6 million and interest-bearing checking accounts increased $19.3 million, or 14.7%, to $150.3 million.

Time deposits increased $92.2 million, or 15.1%, from $611.4 million at December 31, 2023 to $703.6 million at December 31, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024 and at December 31, 2023. The Company has experienced growth and movement in both money market accounts and time deposits as a result of relationship pricing, the current interest rate environment, and customer behaviors, as opposed to time deposit specials or interest rate adjustments. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At December 31, 2024, the Bank’s uninsured deposits represented 28.4% of total deposits, compared to 26.8% at December 31, 2023.

The table below is a summary of our deposit balances for the periods noted:

	December 31, 2024		September 30, 2024		December 31, 2023
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	565,620	$	568,685	$	579,595
Interest-bearing accounts		150,348		140,332		131,031
Savings accounts		181,618		179,214		187,405
Money market accounts		661,478		635,824		634,361
Total Core Deposits	$	1,559,064	$	1,524,055	$	1,532,392
Time Deposits:		703,583		700,151		611,352
Total Deposits:	$	2,262,647	$	2,224,206	$	2,143,744

FHLB and Subordinated Debt

At December 31, 2024, total borrowings decreased $33.4 million, or 21.3%, from $156.5 million at December 31, 2023 to $123.1 million. At December 31, 2024, short-term borrowings decreased $10.7 million, or 66.5%, to $5.4 million, compared to $16.1 million at December 31, 2023. Long-term borrowings decreased $22.6 million, or 18.8%, from $120.6 million at December 31, 2023 to $98.0 million at December 31, 2024. At December 31, 2024 and December 31, 2023, borrowings also consisted of $19.8 million and $19.7 million, respectively, in fixed-to-floating rate subordinated notes.

The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was $90.0 million. There was no outstanding balance under the BTFP at December 31, 2024.

As of December 31, 2024, the Company had $461.6 million of additional borrowing capacity at the Federal Home Loan Bank, $382.9 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At December 31, 2024, shareholders’ equity was $235.9 million, or 8.9% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023. The change was primarily attributable to an increase in accumulated other comprehensive loss of $1.5 million, cash dividends paid of $5.9 million, repurchase of shares at a cost of $7.8 million, partially offset by net income of $11.7 million. At December 31, 2024, total shares outstanding were 20,875,713. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets.

	December 31, 2024				December 31, 2023
	Company		Bank		Company		Bank
Total Capital (to Risk Weighted Assets)	14.38	%	13.65	%	14.67	%	13.94	%
Tier 1 Capital (to Risk Weighted Assets)	12.37	%	12.64	%	12.59	%	12.88	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)	12.37	%	12.64	%	12.59	%	12.88	%
Tier 1 Leverage Ratio (to Adjusted Average Assets)	9.14	%	9.34	%	9.40	%	9.62	%

Dividends

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:

unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;
inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
significant changes in accounting, tax or regulatory practices or requirements;
new legal obligations or liabilities or unfavorable resolutions of litigation;
disruptive technologies in payment systems and other services traditionally provided by banks;
the highly competitive industry and market area in which we operate;
operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
failure or circumvention of our internal controls or procedures;
changes in the securities markets which affect investment management revenues;
increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
the soundness of other financial services institutions which may adversely affect our credit risk;
certain of our intangible assets may become impaired in the future;
new lines of business or new products and services, which may subject us to additional risks;
changes in key management personnel which may adversely impact our operations;
severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Net Income and Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2024			2024			2024			2024			2023			2024			2023
INTEREST AND DIVIDEND INCOME:
Loans	$	25,183		$	25,134		$	24,340		$	24,241		$	23,939		$	98,898		$	91,169
Securities		2,273			2,121			2,141			2,114			2,094			8,649			8,370
Other investments		214			189			148			136			140			687			558
Short-term investments		916			396			173			113			597			1,598			1,021
Total interest and dividend income		28,586			27,840			26,802			26,604			26,770			109,832			101,118

INTEREST EXPENSE:
Deposits		11,443			11,165			10,335			9,293			8,773			42,236			26,649
Short-term borrowings		60			71			186			283			123			600			1,589
Long-term debt		1,557			1,622			1,557			1,428			1,444			6,164			3,957
Subordinated debt		253			254			254			254			254			1,015			1,014
Total interest expense		13,313			13,112			12,332			11,258			10,594			50,015			33,209

Net interest and dividend income		15,273			14,728			14,470			15,346			16,176			59,817			67,909

(REVERSAL OF) PROVISION FOR CREDIT LOSSES		(762	)		941			(294	)		(550	)		486			(665	)		872

Net interest and dividend income after (reversal of) provision for credit losses		16,035			13,787			14,764			15,896			15,690			60,482			67,037

NON-INTEREST INCOME:
Service charges and fees on deposits		2,301			2,341			2,341			2,219			2,283			9,202			8,856
Income from bank-owned life insurance		486			470			502			453			432			1,911			1,820
Unrealized (loss) gain on marketable equity securities		(9	)		10			4			8			(1	)		13			(1	)
(Loss) gain on sale of mortgages		(11	)		246			–			–			–			235			–
Gain on non-marketable equity investments		300			–			987			–			–			1,287			590
Loss on disposal of premises and equipment		–			–			–			(6	)		–			(6	)		(3	)
Loss on defined benefit plan termination		–			–			–			–			–			–			(1,143	)
Gain on bank-owned life insurance death benefit		–			–			–			–			–			–			778
Other income		187			74			–			–			–			261			–
Total non-interest income		3,254			3,141			3,834			2,674			2,714			12,903			10,897

NON-INTEREST EXPENSE:
Salaries and employees benefits		8,429			8,112			7,901			8,244			7,739			32,686			32,214
Occupancy		1,256			1,217			1,218			1,363			1,198			5,054			4,908
Furniture and equipment		505			483			483			484			494			1,955			1,954
Data processing		900			869			846			862			788			3,477			3,157
Software		642			612			566			699			598			2,519			2,311
Debit/ATM card processing expense		593			649			643			552			559			2,437			2,139
Professional fees		471			540			581			569			674			2,161			2,732
FDIC insurance		389			338			323			410			338			1,460			1,321
Advertising		310			271			339			349			377			1,269			1,495
Other		1,431			1,315			1,414			1,250			2,020			5,410			6,119
Total non-interest expense		14,926			14,406			14,314			14,782			14,785			58,428			58,350

INCOME BEFORE INCOME TAXES		4,363			2,522			4,284			3,788			3,619			14,957			19,584

INCOME TAX PROVISION		1,075			618			771			827			1,108			3,291			4,516
NET INCOME	$	3,288		$	1,904		$	3,513		$	2,961		$	2,511		$	11,666		$	15,068

Basic earnings per share	$	0.16		$	0.09		$	0.17		$	0.14		$	0.12		$	0.56		$	0.70
Weighted average shares outstanding		20,561,749			20,804,162			21,056,173			21,180,968			21,253,452			20,899,573			21,535,888
Diluted earnings per share	$	0.16		$	0.09		$	0.17		$	0.14		$	0.12		$	0.56		$	0.70
Weighted average diluted shares outstanding		20,701,276			20,933,833			21,163,762			21,271,323			21,400,664			21,016,358			21,610,329

Other Data:
Return on average assets (1)		0.49	%		0.29	%		0.55	%		0.47	%		0.39	%		0.45	%		0.59	%
Return on average equity (1)		5.48	%		3.19	%		6.03	%		5.04	%		4.31	%		4.93	%		6.47	%
Efficiency ratio		80.56	%		80.62	%		78.20	%		82.03	%		78.27	%		80.35	%		74.04	%
Adjusted efficiency ratio (2)		81.85	%		80.67	%		82.68	%		82.04	%		78.26	%		81.80	%		74.25	%
Net interest margin		2.41	%		2.40	%		2.42	%		2.57	%		2.64	%		2.45	%		2.82	%
Net interest margin, on a fully tax-equivalent basis		2.43	%		2.42	%		2.44	%		2.59	%		2.66	%		2.47	%		2.84	%
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Cash and cash equivalents	$	66,450		$	72,802		$	53,458		$	22,613		$	28,840
Securities available-for-sale, at fair value		160,704			155,889			135,089			138,362			137,115
Securities held to maturity, at amortized cost		205,036			213,266			217,632			221,242			223,370
Marketable equity securities, at fair value		397			252			233			222			196
Federal Home Loan Bank of Boston and other restricted stock – at cost		5,818			7,143			7,143			3,105			3,707

Loans		2,070,189			2,049,002			2,026,226			2,025,566			2,027,317
Allowance for credit losses		(19,529	)		(19,955	)		(19,444	)		(19,884	)		(20,267	)
Net loans		2,050,660			2,029,047			2,006,782			2,005,682			2,007,050

Bank-owned life insurance		77,056			76,570			76,100			75,598			75,145
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,438			1,531			1,625			1,719			1,813
Other assets		73,044			71,492			75,521			76,206			74,848
TOTAL ASSETS	$	2,653,090		$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571

Total deposits	$	2,262,647		$	2,224,206		$	2,171,809		$	2,143,747		$	2,143,744
Short-term borrowings		5,390			4,390			6,570			11,470			16,100
Long-term debt		98,000			128,277			128,277			120,646			120,646
Subordinated debt		19,751			19,741			19,731			19,722			19,712
Securities pending settlement		8,622			2,513			102			–			–
Other liabilities		22,770			20,697			23,104			25,855			26,960
TOTAL LIABILITIES		2,417,180			2,399,824			2,349,593			2,321,440			2,327,162

TOTAL SHAREHOLDERS’ EQUITY		235,910			240,655			236,477			235,796			237,409
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,653,090		$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended
	December 31,	September 30,	June 30,	March 31,	December 31,
	2024	2024	2024	2024	2023
Shares outstanding at end of period	20,875,713	21,113,408	21,357,849	21,627,690	21,666,807

Operating results:
Net interest income	$ 15,273	$ 14,728	$ 14,470	$ 15,346	$ 16,176
(Reversal of) provision for credit losses	(762)	941	(294)	(550)	486
Non-interest income	3,254	3,141	3,834	2,674	2,714
Non-interest expense	14,926	14,406	14,314	14,782	14,785
Income before income provision for income taxes	4,363	2,522	4,284	3,788	3,619
Income tax provision	1,075	618	771	827	1,108
Net income	3,288	1,904	3,513	2,961	2,511

Performance Ratios:
Net interest margin	2.41%	2.40%	2.42%	2.57%	2.64%
Net interest margin, on a fully tax-equivalent basis	2.43%	2.42%	2.44%	2.59%	2.66%
Interest rate spread	1.63%	1.60%	1.66%	1.85%	1.96%
Interest rate spread, on a fully tax-equivalent basis	1.65%	1.62%	1.67%	1.86%	1.98%
Return on average assets	0.49%	0.29%	0.55%	0.47%	0.39%
Return on average equity	5.48%	3.19%	6.03%	5.04%	4.31%
Efficiency ratio (GAAP)	80.56%	80.62%	78.20%	82.03%	78.27%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾	81.85%	80.67%	82.68%	82.04%	78.26%

Per Common Share Data:
Basic earnings per share	$ 0.16	$ 0.09	$ 0.17	$ 0.14	$ 0.12
Earnings per diluted share	0.16	0.09	0.17	0.14	0.12
Cash dividend declared	0.07	0.07	0.07	0.07	0.07
Book value per share	11.30	11.40	11.07	10.90	10.96
Tangible book value per share (non-GAAP) ⁽²⁾	10.63	10.73	10.41	10.25	10.30

Asset Quality:
30-89 day delinquent loans	$ 3,694	$ 3,059	$ 3,270	$ 3,000	$ 4,605
90 days or more delinquent loans	1,301	1,253	2,280	1,716	1,394
Total delinquent loans	4,995	4,312	5,550	4,716	5,999
Total delinquent loans as a percentage of total loans	0.24%	0.21%	0.27%	0.23%	0.30%
Nonperforming loans	$ 5,381	$ 4,873	$ 5,845	$ 5,837	$ 6,421
Nonperforming loans as a percentage of total loans	0.26%	0.24%	0.29%	0.29%	0.32%
Nonperforming assets as a percentage of total assets	0.20%	0.18%	0.23%	0.23%	0.25%
Allowance for credit losses as a percentage of nonperforming loans	362.93%	409.50%	332.66%	340.65%	315.64%
Allowance for credit losses as a percentage of total loans	0.94%	0.97%	0.96%	0.98%	1.00%
Net loan (recoveries) charge-offs	$ (128)	$ 98	$ 10	$ (67)	$ 136
Net loan (recoveries) charge-offs as a percentage of average loans	(0.01)%	0.00%	0.00%	0.00%	0.01%

____________________________

The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.
Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

The following table sets forth the information relating to our average balances and net interest income for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	December 31, 2024								September 30, 2024							December 31, 2023
	Average						Average Yield/		Average					Average Yield/		Average					Average Yield/
	Balance		Interest				Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,062,822		$	25,311		4.88	%	$	2,038,593	$	25,253		4.93	%	$	2,017,089	$	24,052		4.73	%
Securities(2)		361,476			2,273		2.50			354,696		2,121		2.38			355,078		2,094		2.34
Other investments		15,924			214		5.35			15,904		189		4.73			12,119		140		4.58
Short-term investments(3)		76,795			916		4.75			32,043		396		4.92			42,826		597		5.53
Total interest-earning assets		2,517,017			28,714		4.54			2,441,236		27,959		4.56			2,427,112		26,883		4.39
Total non-interest-earning assets		155,538								153,585							158,435
Total assets	$	2,672,555							$	2,594,821						$	2,585,547

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	149,231			264		0.70		$	131,133		271		0.82		$	139,894		260		0.74
Savings accounts		179,122			38		0.08			179,844		38		0.08			187,047		39		0.08
Money market accounts		654,965			3,553		2.16			621,340		3,172		2.03			657,407		2,716		1.64
Time deposit accounts		700,324			7,588		4.31			688,797		7,684		4.44			603,860		5,758		3.78
Total interest-bearing deposits		1,683,642			11,443		2.70			1,621,114		11,165		2.74			1,588,208		8,773		2.19
Borrowings		147,748			1,870		5.04			153,317		1,947		5.05			149,585		1,821		4.83
Interest-bearing liabilities		1,831,390			13,313		2.89			1,774,431		13,112		2.94			1,737,793		10,594		2.42
Non-interest-bearing deposits		579,168								559,224							588,748
Other non-interest-bearing liabilities		23,380								23,466							27,847
Total non-interest-bearing liabilities		602,548								582,690							616,595
Total liabilities		2,433,938								2,357,121							2,354,388
Total equity		238,617								237,700							231,159
Total liabilities and equity	$	2,672,555							$	2,594,821						$	2,585,547
Less: Tax-equivalent adjustment(2)					(128	)						(119	)						(113	)
Net interest and dividend income				$	15,273						$	14,728						$	16,176
Net interest rate spread(4)							1.63	%						1.60	%						1.96	%
Net interest rate spread, on a tax-equivalent basis(5)							1.65	%						1.62	%						1.98	%
Net interest margin(6)							2.41	%						2.40	%						2.64	%
Net interest margin, on a tax-equivalent basis(7)							2.43	%						2.42	%						2.66	%
Ratio of average interest-earning assets to average interest-bearing liabilities							137.44	%						137.58	%						139.67	%

The following tables set forth the information relating to our average balances and net interest income for the twelve months ended December 31, 2024 and 2023 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Twelve Months Ended December 31,
	2024							2023
	Average Balance		Interest			Average Yield/ Cost		Average Balance		Interest			Average Yield/ Cost
	Average Balance		Interest			Average Yield/ Cost		Average Balance		Interest			Average Yield/ Cost
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,035,149	$	99,369		4.88	%	$	2,006,166	$	91,640		4.57	%
Securities(2)		357,631		8,649		2.42			368,201		8,371		2.27
Other investments		14,669		687		4.68			12,425		558		4.49
Short-term investments(3)		33,254		1,598		4.81			20,459		1,021		4.99
Total interest-earning assets		2,440,703		110,303		4.52			2,407,251		101,590		4.22
Total non-interest-earning assets		155,056							155,511
Total assets	$	2,595,759						$	2,562,762

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	136,861		1,022		0.75	%	$	142,005		1,041		0.73	%
Savings accounts		182,678		166		0.09			202,354		181		0.09
Money market accounts		631,197		12,242		1.94			697,621		9,529		1.37
Time deposit accounts		666,917		28,806		4.32			524,827		15,898		3.03
Total interest-bearing deposits		1,617,653		42,236		2.61			1,566,807		26,649		1.70
Short-term borrowings and long-term debt		155,560		7,779		5.00			135,532		6,560		4.84
Total interest-bearing liabilities		1,773,213		50,015		2.82			1,702,339		33,209		1.95
Non-interest-bearing deposits		561,264							602,652
Other non-interest-bearing liabilities		24,541							24,885
Total non-interest-bearing liabilities		585,805							627,537

Total liabilities		2,359,018							2,329,876
Total equity		236,741							232,886
Total liabilities and equity	$	2,595,759						$	2,562,762
Less: Tax-equivalent adjustment (2)				(471	)						(472	)
Net interest and dividend income			$	59,817						$	67,909
Net interest rate spread (4)						1.68	%						2.25	%
Net interest rate spread, on a tax-equivalent basis (5)						1.70	%						2.27	%
Net interest margin (6)						2.45	%						2.82	%
Net interest margin, on a tax-equivalent basis (7)						2.47	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities						137.64	%						141.41	%

(1)	Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2)	Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3)	Short-term investments include federal funds sold.
(4)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)	Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6)	Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7)	Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8)	Annualized.

Reconciliation of Non-GAAP to GAAP Financial Measures

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

	For the quarter ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
	(Dollars in thousands)

Loan interest (no tax adjustment)	$	25,183		$	25,134		$	24,340		$	24,241		$	23,939
Tax-equivalent adjustment		128			119			114			110			113
Loan interest (tax-equivalent basis)	$	25,311		$	25,253		$	24,454		$	24,351		$	24,052

Net interest income (no tax adjustment)	$	15,273		$	14,728		$	14,470		$	15,346		$	16,176
Tax equivalent adjustment		128			119			114			110			113
Net interest income (tax-equivalent basis)	$	15,401		$	14,847		$	14,584		$	15,456		$	16,289

Net interest income (no tax adjustment)	$	15,273		$	14,728		$	14,470		$	15,346		$	16,176
Less:
Fair value hedge interest income		74			434			447			443			459
Adjusted net interest income (non-GAAP)	$	15,199		$	14,294		$	14,023		$	14,903		$	15,717

Average interest-earning assets	$	2,517,017		$	2,441,236		$	2,400,633		$	2,403,086		$	2,427,112
Net interest margin (no tax adjustment)		2.41	%		2.40	%		2.42	%		2.57	%		2.64	%
Net interest margin, tax-equivalent		2.43	%		2.42	%		2.44	%		2.59	%		2.66	%
Adjusted net interest margin, excluding fair value hedge interest income (non-GAAP)		2.40	%		2.33	%		2.35	%		2.50	%		2.57	%

Book Value per Share (GAAP)	$	11.30		$	11.40		$	11.07		$	10.90		$	10.96
Non-GAAP adjustments:
Goodwill		(0.60	)		(0.59	)		(0.58	)		(0.58	)		(0.58	)
Core deposit intangible		(0.07	)		(0.08	)		(0.08	)		(0.07	)		(0.08	)
Tangible Book Value per Share (non-GAAP)	$	10.63		$	10.73		$	10.41		$	10.25		$	10.30

	For the quarter ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	14,926		$	14,406		$	14,314		$	14,782		$	14,785

Net Interest Income (GAAP)	$	15,273		$	14,728		$	14,470		$	15,346		$	16,176

Non-interest Income (GAAP)	$	3,254		$	3,141		$	3,834		$	2,674		$	2,714
Non-GAAP adjustments:
Unrealized losses (gains) on marketable equity securities		9			(10	)		(4	)		(8	)		1
Gain on non-marketable equity investments		(300	)		–			(987	)		–			–
Loss on disposal of premises and equipment		–			–			–			6			–
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	2,963		$	3,131		$	2,843		$	2,672		$	2,715
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	18,236		$	17,859		$	17,313		$	18,018		$	18,891

Efficiency Ratio (GAAP)		80.56	%		80.62	%		78.20	%		82.03	%		78.27	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		81.85	%		80.67	%		82.68	%		82.04	%		78.26	%

	For the twelve months ended
	12/31/2024	12/31/2023
	(Dollars in thousands)

Loan income (no tax adjustment)	$ 98,898	$ 91,169
Tax-equivalent adjustment	471	472
Loan income (tax-equivalent basis)	$ 99,369	$ 91,641

Net interest income (no tax adjustment)	$ 59,817	$ 67,909
Tax equivalent adjustment	471	472
Net interest income (tax-equivalent basis)	$ 60,288	$ 68,381

Net interest income (no tax adjustment)	$ 59,817	$ 67,909
Less:
Fair value hedge interest income	1,398	1,085
Adjusted net interest income (non-GAAP)	$ 58,419	$ 66,824

Average interest-earning assets	$ 2,440,703	$ 2,407,251
Net interest margin (no tax adjustment)	2.45%	2.82%
Net interest margin, tax-equivalent	2.47%	2.84%
Adjusted net interest margin, excluding fair value hedge interest income (non-GAAP)	2.39%	2.77%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$ 58,428	$ 58,350

Net Interest Income (GAAP)	$ 59,817	$ 67,909

Non-interest Income (GAAP)	$ 12,903	$ 10,897
Non-GAAP adjustments:
Unrealized gains on marketable equity securities	(13)	1
Loss on disposal of premises and equipment, net	6	3
Gain on bank-owned life insurance	–	(778)
Gain on non-marketable equity investments	(1,287)	(590)
Loss on defined benefit plan curtailment	–	1,143
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$ 11,609	$ 10,676
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$ 71,426	$ 78,585

Efficiency Ratio (GAAP)	80.35%	74.04%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))	81.80%	74.25%

For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911

The MIL Network –

January 29, 2025

MIL-OSI: EverQuote to Announce Fourth Quarter and Full Year 2024 Financial Results on February 24, 2025

Source: GlobeNewswire (MIL-OSI)

CAMBRIDGE, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced that it will report fourth quarter and full year 2024 financial results after the market close on Monday, February 24, 2025. Management will host a conference call and webcast to discuss the Company’s financial results, recent developments, and business outlook at 4:30 p.m. ET.

What:	EverQuote Fourth Quarter and Full Year 2024 Financial Results Conference Call

When:	Monday, February 24, 2025

Time:	4:30 p.m. ET

Live Call:	US Toll Free: (800) 715-9871 All Other: +1 (646) 307-1963 Conference ID: 4210704

Live Webcast and Replay:	http://investors.everquote.com/

About EverQuote

EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with our insurance provider customers, which includes both carriers and agents. Our vision is to be the leading growth partner for P&C insurance providers. Our results-driven marketplace, powered by our proprietary data and technology platform, is improving the way insurance providers attract and connect with consumers shopping for insurance.

For more information, visit https://investors.everquote.com and follow on LinkedIn.

Investor Relations Contact:

Brinlea Johnson
The Blueshirt Group
415-489-2193
brinlea@blueshirtgroup.com

The MIL Network –

January 29, 2025

MIL-OSI: Enterprise Bancorp, Inc. Announces Fourth Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

Filed by Enterprise Bancorp, Inc.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934

Subject Company: Enterprise Bancorp, Inc.
SEC File No.: 001-33912
Date: January 28, 2025

LOWELL, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (“Enterprise”) (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended December 31, 2024. Net income amounted to $10.7 million, or $0.86 per diluted common share, for the three months ended December 31, 2024, compared to $10.0 million, or $0.80 per diluted common share, for the three months ended September 30, 2024 and $7.9 million, or $0.64 per diluted common share, for the three months ended December 31, 2023.

On December 9, 2024, Enterprise and Enterprise Bank announced the signing of a definitive merger agreement with Independent Bank Corp. (“Independent”) and its wholly owned subsidiary, Rockland Trust Company (“Rockland Trust”), pursuant to which Enterprise will merge with and into Independent and Enterprise Bank will merge into Rockland Trust. The proposed merger is expected to close in the second half of 2025, subject to customary closing conditions, including regulatory approvals and approval of Enterprise shareholders. No vote of Independent Bank Corp. shareholders is required.

Selected financial results at or for the quarter ended December 31, 2024, compared to September 30, 2024, were as follows:

The returns on average assets and average equity were 0.89% and 11.82%, respectively.
Tax-equivalent net interest margin (non-GAAP) (“net interest margin”) was 3.29%, an increase of 7 basis points.
Total loans amounted to $3.98 billion, an increase of 3.2%.
Total deposits were relatively unchanged and amounted to $4.19 billion.
Wealth assets under management and administration amounted to $1.54 billion, an increase of 1.4%.

Chief Executive Officer Steven Larochelle commented, “As we continue to work toward the upcoming completion of the proposed merger with Rockland Trust, I am pleased to announce that our team continued to deliver strong results in the fourth quarter. Loan growth was once again robust at 3.2% for the quarter while operating results were positively impacted by margin expansion as we benefited from the impact of Federal Reserve Bank interest rate cuts coupled with the flattening of the yield curve.”

Executive Chairman & Founder George Duncan stated, “The news of our anticipated merger with Rockland Trust has been well received by our shareholders, customers and communities. The planning of our integration with them is going well and the anticipated synergies and cultural alignment of our two banks are being confirmed.”

Mr. Duncan added, “I congratulate Steve, and the whole team, for another very successful quarter and year. This was our third straight year of 12% loan growth, and I believe this is a testament to our relationship-based sales and service culture partnered with our strong commitment to community outreach and involvement.”

Net Interest Income

Net interest income for the three months ended December 31, 2024, amounted to $38.5 million, an increase of $2.0 million, or 5%, compared to the three months ended December 31, 2023. The increase was due primarily to an increase in loan interest income of $7.8 million, partially offset by an increase in deposit interest expense of $3.7 million and a decrease in income on other interest-earning assets of $1.5 million.

The increase in interest income during the fourth quarter of 2024, compared to the prior year quarter, was due primarily to loan growth and higher loan yields, while the increase in interest expense during the period was attributed primarily to an increase in certificates of deposit balances and higher market rates on deposits.

Net Interest Margin

Net interest margin for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, amounted to 3.29%, 3.22% and 3.29%, respectively.

Three months ended – December 31, 2024, compared to December 31, 2023

Net interest margin was positively impacted by loan growth and an increase in loan yields, offset by increases in average funding liabilities and funding costs as well as a decrease in the average balance of other interest-earning assets.

The increase in interest-earning asset yields of 27 basis points was due primarily to loan repricing and originations at higher interest rates while the increase in funding costs of 29 basis points was driven by higher market rates and growth in certificate of deposit balances.

Three months ended – December 31, 2024, compared to September 30, 2024

The increase in net interest margin was due primarily to loan growth and a decrease in funding costs, partially offset by decreases in interest-earning asset yields and the average balance of other interest-earning assets.

The decreases in funding costs of 10 basis points and interest-earning asset yields of 3 basis points were driven primarily by the 100 basis point reduction in the federal funds rate from September 2024 through December 2024. In addition, the decrease in other interest-earning assets resulted mainly from funding loan growth during the period.

Provision for Credit Losses

The provision for credit losses for the three-month periods ended December 31, 2024 and December 31, 2023, are presented below:

	Three months ended						Increase / (Decrease)
(Dollars in thousands)	December 31, 2024			December 31, 2023			Increase / (Decrease)
Provision for credit losses on loans – collectively evaluated	$	1,939		$	1,132		$	807
Provision for credit losses on loans – individually evaluated		(1,874	)		(27	)		(1,847	)
Provision for credit losses on loans		65			1,105			(1,040	)

Provision for unfunded commitments		(171	)		1,388			(1,559	)

Provision for credit losses	$	(106	)	$	2,493		$	(2,599	)

The decrease in the provision for credit losses of $2.6 million was due to net decreases in reserves on individually evaluated loans of $1.8 million and unfunded commitments of $1.6 million, partially offset by an increase in reserves on collectively evaluated loans of $807 thousand which was due primarily to loan growth.

The decrease in reserves on individually evaluated loans was due primarily to two commercial relationships that experienced improvement in their collateral valuation during the period and the decrease in reserves for unfunded commitments resulted primarily by a decrease in off-balance sheet commitments that required a reserve.

Non-Interest Income

Non-interest income for the three months ended December 31, 2024, amounted to $5.6 million, an increase of $69 thousand, or 1%, compared to the three months ended December 31, 2023. The increase was due primarily to increases in wealth management fees, income on bank-owned life insurance and other income, partially offset by a decrease in gains on equity securities.

Non-Interest Expense

Non-interest expense for the three months ended December 31, 2024, amounted to $29.8 million, an increase of $1.6 million, or 6%, compared to the three months ended December 31, 2023. The increase was due primarily to increases in salaries and employee benefits expense of $808 thousand and merger-related expenses of $1.1 million.

Income Taxes

The effective tax rate for the three months ended December 31, 2024, amounted to 25.4%, compared to 30.3% for the three months ended December 31, 2023. The decrease was due primarily to annual book to tax return adjustments in the prior year quarter.

Balance Sheet

Total assets amounted to $4.83 billion at December 31, 2024, compared to $4.47 billion at December 31, 2023, an increase of 8%.

Total investment securities at fair value amounted to $593.6 million at December 31, 2024, compared to $668.2 million at December 31, 2023. The decrease of 11% during the year ended December 31, 2024, was largely attributable to principal pay-downs, calls and maturities. In addition, unrealized losses on debt securities amounted to $101.8 million at December 31, 2024, compared to $102.9 million at December 31, 2023, a decrease of 1%.

Total loans amounted to $3.98 billion at December 31, 2024, compared to $3.57 billion at December 31, 2023. The increase of 12% during the year ended December 31, 2024, was due primarily to increases in commercial real estate and construction loans of $203.1 million and $94.9 million, respectively.

Total deposits amounted to $4.19 billion at December 31, 2024, compared to $3.98 billion at December 31, 2023. The increase of 5% during the year ended December 31, 2024, was due primarily to increases in money market and certificate of deposit balances of $51.5 million and $164.1 million, respectively.

Total borrowed funds amounted to $153.1 million at December 31, 2024, compared to $25.8 million at December 31, 2023. The increase of $127.4 million during the year ended December 31, 2024, the majority of which occurred at the end of December, resulted primarily from an increase in short-term advances used to support strong loan growth. Average borrowed funds during the fourth quarter of 2024 amounted to $37.8 million.

Total shareholders’ equity amounted to $360.7 million at December 31, 2024, compared to $329.1 million at December 31, 2023. The increase of 10% during the year ended December 31, 2024, was due primarily to an increase in retained earnings of $26.9 million.

Credit Quality

Selected credit quality metrics at December 31, 2024, compared to December 31, 2023, were as follows:

The allowance for credit losses (“ACL”) for loans amounted to $63.5 million, or 1.59% of total loans, compared to $59.0 million, or 1.65% of total loans. The decrease in the ACL for loans to total loan ratio was due primarily to a decrease in reserves on individually evaluated loans and a decrease in qualitative factors within our ACL model.
The reserve for unfunded commitments (included in other liabilities) amounted to $4.4 million, compared to $7.1 million. The decrease was driven primarily by a decrease in off-balance sheet commitments that required a reserve.
Non-performing loans amounted to $26.7 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase resulted primarily from two individually evaluated commercial construction loans which were placed on non-accrual.

Net charge-offs for the year ended December 31, 2024, amounted to $206 thousand, or 0.01% of average total loans, compared to $105 thousand, or 0.00% of average total loans, for the year ended December 31, 2023.

Wealth Management

Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.54 billion at December 31, 2024, an increase of $215.8 million, or 16%, compared to December 31, 2023, and resulted primarily from an increase in market values.

About Enterprise Bancorp, Inc.

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 141 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

Forward-Looking Statements

This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “upcoming,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, (i) disruption from the proposed merger with Independent; (ii) the risk that the proposed merger with Independent may not be completed in a timely manner or at all; (iii) the occurrence of any event, change, or other circumstances that could give rise to the termination of the proposed merger with Independent, including under circumstances that would require Enterprise to pay a termination fee; (iv) the failure to obtain necessary shareholder or regulatory approvals for the proposed merger with Independent; (v) the ability to successfully integrate the combined business; (vi) the possibility that the amount of the costs, fees, expenses, and charges related to the proposed merger with Independent may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities; (vii) the failure of the conditions to the proposed merger with Independent to be satisfied; (viii) reputational risk and the reaction of the parties’ customers to the proposed merger with Independent; (xi) the risk of potential litigation or regulatory action related to the proposed merger with Independent; (x) the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; (xi) potential recession in the United States and our market areas; (xii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (xiii) increased competition for deposits and related changes in deposit customer behavior; (xiv) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (xv) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (xvi) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (xvii) increases in unemployment rates in the United States and our market areas; (xviii) declines in commercial real estate values and prices; (xix) uncertainty regarding United States fiscal debt, deficit and budget matters; (xx) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xxi) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; (xxii) competition and market expansion opportunities; (xxiii) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xxiv) changes in tax laws; (xxv) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xxvi) potential increased costs related to the impacts of climate change; and (xxvii) current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited)

(Dollars in thousands, except per share data)	December 31, 2024			December 31, 2023
Assets
Cash and cash equivalents:
Cash and due from banks	$	42,689		$	37,443
Interest-earning deposits with banks		41,152			19,149
Total cash and cash equivalents		83,841			56,592
Investments:
Debt securities at fair value (amortized cost of $685,766 and $763,981, respectively)		583,930			661,113
Equity securities at fair value		9,665			7,058
Total investment securities at fair value		593,595			668,171
Federal Home Loan Bank stock		7,093			2,402
Loans held for sale		520			200
Loans:
Total loans		3,982,898			3,567,631
Allowance for credit losses		(63,498	)		(58,995	)
Net loans		3,919,400			3,508,636
Premises and equipment, net		42,444			44,931
Lease right-of-use asset		24,126			24,820
Accrued interest receivable		20,553			19,233
Deferred income taxes, net		49,096			49,166
Bank-owned life insurance		67,421			65,455
Prepaid income taxes		2,583			1,589
Prepaid expenses and other assets		11,398			19,183
Goodwill		5,656			5,656
Total assets	$	4,827,726		$	4,466,034
Liabilities and Shareholders‘Equity
Liabilities
Deposits	$	4,187,698		$	3,977,521
Borrowed funds		153,136			25,768
Subordinated debt		59,815			59,498
Lease liability		23,849			24,441
Accrued expenses and other liabilities		33,425			45,011
Accrued interest payable		9,055			4,678
Total liabilities		4,466,978			4,136,917
Commitments and Contingencies
Shareholders‘Equity
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued		—			—
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,447,308 and 12,272,674 shares issued and outstanding, respectively.		124			123
Additional paid-in capital		111,295			107,377
Retained earnings		328,243			301,380
Accumulated other comprehensive loss		(78,914	)		(79,763	)
Total shareholders’ equity		360,748			329,117
Total liabilities and shareholders’ equity	$	4,827,726		$	4,466,034

ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)

	Three months ended								Year ended
(Dollars in thousands, except per share data)	December 31, 2024			September 30, 2024			December 31, 2023		December 31, 2024			December 31, 2023
Interest and dividend income:
Other interest-earning assets	$	833		$	2,497		$	2,350	$	6,199		$	9,943
Investment securities		3,881			3,835			4,219		15,693			18,575
Loans and loans held for sale		54,528			53,809			46,680		208,378			172,535
Total interest and dividend income		59,242			60,141			53,249		230,270			201,053
Interest expense:
Deposits		19,488			20,581			15,821		76,513			44,389
Borrowed funds		394			674			43		2,426			113
Subordinated debt		867			866			867		3,467			3,467
Total interest expense		20,749			22,121			16,731		82,406			47,969
Net interest income		38,493			38,020			36,518		147,864			153,084
Provision for credit losses		(106	)		1,332			2,493		1,985			9,249
Net interest income after provision for credit losses		38,599			36,688			34,025		145,879			143,835
Non-interest income:
Wealth management fees		2,043			2,025			1,797		7,888			6,730
Deposit and interchange fees		2,240			2,282			2,145		8,875			8,475
Income on bank-owned life insurance, net		522			518			314		2,001			1,264
Net losses on sales of debt securities		—			(2	)		—		(2	)		(2,419	)
Net gains on sales of loans		33			57			—		156			34
Net (losses) gains on equity securities		(30	)		604			674		1,140			666
Other income		808			656			617		2,821			2,859
Total non-interest income		5,616			6,140			5,547		22,879			17,609
Non-interest expense:
Salaries and employee benefits		19,276			20,097			18,468		78,224			72,283
Occupancy and equipment expenses		2,364			2,438			2,283		9,667			9,722
Technology and telecommunications expenses		2,687			2,618			2,719		10,708			10,656
Advertising and public relations expenses		609			559			709		2,585			2,786
Audit, legal and other professional fees		460			569			788		2,474			2,945
Deposit insurance premiums		950			900			768		3,571			2,712
Supplies and postage expenses		242			261			245		980			998
Merger-related expenses		1,137			—			—		1,137			—
Other operating expenses		2,117			1,911			2,244		7,786			8,097
Total non-interest expense		29,842			29,353			28,224		117,132			110,199
Income before income taxes		14,373			13,475			11,348		51,626			51,245
Provision for income taxes		3,646			3,488			3,441		12,893			13,187
Net income	$	10,727		$	9,987		$	7,907	$	38,733		$	38,058

Basic earnings per common share	$	0.86		$	0.80		$	0.64	$	3.13		$	3.11
Diluted earnings per common share	$	0.86		$	0.80		$	0.64	$	3.12		$	3.11

Basic weighted average common shares outstanding		12,433,895			12,428,543			12,261,918		12,386,669			12,223,626
Diluted weighted average common shares outstanding		12,460,063			12,438,160			12,276,769		12,398,062			12,244,036

ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)

	At or for the three months ended
(Dollars in thousands, except per share data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Balance Sheet Data
Total cash and cash equivalents	$	83,841		$	88,632		$	199,719		$	147,834		$	56,592
Total investment securities at fair value		593,595			631,975			636,838			652,026			668,171
Total loans		3,982,898			3,858,940			3,768,649			3,654,322			3,567,631
Allowance for credit losses		(63,498	)		(63,654	)		(61,999	)		(60,741	)		(58,995	)
Total assets		4,827,726			4,742,809			4,773,681			4,624,015			4,466,034
Total deposits		4,187,698			4,189,461			4,248,801			4,106,119			3,977,521
Borrowed funds		153,136			59,949			61,785			63,246			25,768
Subordinated debt		59,815			59,736			59,657			59,577			59,498
Total shareholders’ equity		360,748			368,109			340,441			333,439			329,117
Total liabilities and shareholders’ equity		4,827,726			4,742,809			4,773,681			4,624,015			4,466,034

Wealth Management
Wealth assets under management	$	1,230,014		$	1,212,076		$	1,129,147		$	1,105,036		$	1,077,761
Wealth assets under administration	$	305,930		$	302,891		$	267,529		$	268,074		$	242,338

Shareholders’ Equity Ratios
Book value per common share	$	28.98		$	29.62		$	27.40		$	26.94		$	26.82
Dividends paid per common share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.23

Regulatory Capital Ratios
Total capital to risk weighted assets		13.06	%		13.07	%		13.07	%		13.20	%		13.12	%
Tier 1 capital to risk weighted assets⁽¹⁾		10.38	%		10.36	%		10.34	%		10.43	%		10.34	%
Tier 1 capital to average assets		8.94	%		8.68	%		8.76	%		8.85	%		8.74	%

Credit Quality Data
Non-performing loans	$	26,687		$	25,946		$	17,731		$	18,527		$	11,414
Non-performing loans to total loans		0.67	%		0.67	%		0.47	%		0.51	%		0.32	%
Non-performing assets to total assets		0.55	%		0.55	%		0.37	%		0.40	%		0.26	%
ACL for loans to total loans		1.59	%		1.65	%		1.65	%		1.66	%		1.65	%
Net charge-offs (recoveries)	$	221		$	(7	)	$	(130	)	$	122		$	15

Income Statement Data
Net interest income	$	38,493		$	38,020		$	36,161		$	35,190		$	36,518
Provision for credit losses		(106	)		1,332			137			622			2,493
Total non-interest income		5,616			6,140			5,628			5,495			5,547
Total non-interest expense		29,842			29,353			29,029			28,908			28,224
Income before income taxes		14,373			13,475			12,623			11,155			11,348
Provision for income taxes		3,646			3,488			3,111			2,648			3,441
Net income	$	10,727		$	9,987		$	9,512		$	8,507		$	7,907

Income Statement Ratios
Diluted earnings per common share	$	0.86		$	0.80		$	0.77		$	0.69		$	0.64
Return on average total assets		0.89	%		0.82	%		0.82	%		0.75	%		0.69	%
Return on average shareholders’ equity		11.82	%		11.20	%		11.55	%		10.47	%		10.21	%
Net interest margin (tax-equivalent)⁽²⁾		3.29	%		3.22	%		3.19	%		3.20	%		3.29	%

(1) Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
(2) Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.

ENTERPRISE BANCORP, INC.
Consolidated Loan and Deposit Data
(unaudited)

Major classifications of loans at the dates indicated were as follows:

(Dollars in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Commercial real estate owner-occupied	$	704,634		$	660,063		$	660,478		$	635,420		$	619,302
Commercial real estate non owner-occupied		1,563,201			1,579,827			1,544,386			1,524,174			1,445,435
Commercial and industrial		479,821			415,642			426,976			417,604			430,749
Commercial construction		679,969			674,434			622,094			583,711			585,113
Total commercial loans		3,427,625			3,329,966			3,253,934			3,160,909			3,080,599

Residential mortgages		443,096			424,030			413,323			400,093			393,142
Home equity loans and lines		103,858			95,982			93,220			85,144			85,375
Consumer		8,319			8,962			8,172			8,176			8,515
Total retail loans		555,273			528,974			514,715			493,413			487,032
Total loans		3,982,898			3,858,940			3,768,649			3,654,322			3,567,631

ACL for loans		(63,498	)		(63,654	)		(61,999	)		(60,741	)		(58,995	)
Net loans	$	3,919,400		$	3,795,286		$	3,706,650		$	3,593,581		$	3,508,636

Deposits are summarized at the periods indicated were as follows:

(Dollars in thousands)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Non-interest checking	$	1,077,998	$	1,064,424	$	1,041,771	$	1,038,887	$	1,061,009
Interest-bearing checking		699,671		682,050		788,822		730,819		697,632
Savings		270,367		279,824		294,566		285,090		294,865
Money market		1,454,443		1,488,437		1,504,551		1,469,181		1,402,939
CDs $250,000 or less		377,958		375,055		358,149		337,367		295,789
CDs greater than $250,000		307,261		299,671		260,942		244,775		225,287
Deposits	$	4,187,698	$	4,189,461	$	4,248,801	$	4,106,119	$	3,977,521

ENTERPRISE BANCORP, INC.
Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
(unaudited)

The following table presents the Company’s average balance sheets, net interest income and average rates for the periods indicated:

	Three months ended December 31, 2024						Three months ended September 30, 2024						Three months ended December 31, 2023
(Dollars in thousands)	Average Balance		Interest⁽¹⁾		Average Yield⁽¹⁾		Average Balance		Interest⁽¹⁾		Average Yield⁽¹⁾		Average Balance		Interest⁽¹⁾		Average Yield⁽¹⁾
Assets:
Other interest-earning assets⁽²⁾	$	68,224	$	833	4.85	%	$	181,465	$	2,497	5.48	%	$	172,167	$	2,350	5.42	%
Investment securities⁽³⁾(tax-equivalent)		704,629		3,985	2.26	%		731,815		3,945	2.16	%		799,093		4,345	2.17	%
Loans and loans held for sale⁽⁴⁾(tax-equivalent)		3,911,386		54,673	5.56	%		3,813,800		53,956	5.63	%		3,467,945		46,824	5.36	%
Total interest-earnings assets (tax-equivalent)		4,684,239		59,491	5.06	%		4,727,080		60,398	5.09	%		4,439,205		53,519	4.79	%
Other assets		101,952						104,284						78,102
Total assets	$	4,786,191					$	4,831,364					$	4,517,307

Liabilities and stockholders’ equity:
Non-interest checking	$	1,106,823		—			$	1,069,130		—			$	1,145,254	$	—
Interest checking, savings and money market		2,471,854		11,728	1.89	%		2,574,439		13,017	2.01	%		2,437,142		10,786	1.76	%
CDs		683,248		7,760	4.52	%		651,614		7,564	4.62	%		500,286		5,035	3.99	%
Total deposits		4,261,925		19,488	1.82	%		4,295,183		20,581	1.91	%		4,082,682		15,821	1.54	%
Borrowed funds		37,812		394	4.15	%		61,232		674	4.38	%		7,572		43	2.24	%
Subordinated debt⁽⁵⁾		59,768		867	5.80	%		59,689		866	5.81	%		59,451		867	5.83	%
Total funding liabilities		4,359,505		20,749	1.89	%		4,416,104		22,121	1.99	%		4,149,705		16,731	1.60	%
Other liabilities		65,720						60,524						60,376
Total liabilities		4,425,225						4,476,628						4,210,081
Stockholders’ equity		360,966						354,736						307,226
Total liabilities and stockholders’ equity	$	4,786,191					$	4,831,364					$	4,517,307

Net interest-rate spread (tax-equivalent)					3.17	%					3.10	%					3.19	%
Net interest income (tax-equivalent)				38,742						38,277						36,788
Net interest margin (tax-equivalent)					3.29	%					3.22	%					3.29	%
Less tax-equivalent adjustment				249						257						270
Net interest income			$	38,493					$	38,020					$	36,518
Net interest margin					3.27	%					3.20	%					3.27	%

(1) Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
(2) Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and Federal Home Loan Bank stock.
(3) Average investment securities are presented at average amortized cost.
(4) Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
(5) Subordinated debt is net of average deferred debt issuance costs.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This communication may contain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectations and intentions of Independent and Enterprise, the expected timing of completion of the proposed transaction, and other statements that are not historical facts. Such statements reflect the current views of Independent Bank Corp. (“Independent”) and Enterprise Bancorp, Inc. (“Enterprise”) with respect to future events and financial performance, and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs, expectations, plans, predictions, forecasts, objectives, assumptions or future events or performance, are forward-looking statements. Forward-looking statements often, but not always, may be identified by words such as expect, anticipate, believe, intend, potential, estimate, plan, target, goal, or similar words or expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.

Independent and Enterprise caution that the forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond Independent’s and Enterprise’s control. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) changes in general economic, political, or industry conditions; (2) uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; (3) volatility and disruptions in global capital and credit markets; (4) movements in interest rates; (5) the resurgence of elevated levels of inflation or inflationary pressures in the United States and the Enterprise and Independent market areas; (6) increased competition in the markets of Independent and Enterprise; (7) success, impact, and timing of business strategies of Independent and Enterprise; (8) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations; (9) the expected impact of the proposed transaction between Enterprise and Independent on the combined entities’ operations, financial condition, and financial results; (10) the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (11) the failure to obtain Enterprise shareholder approval or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all or other delays in completing the proposed transaction; (12) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; (13) the outcome of any legal proceedings that may be instituted against Independent or Enterprise; (14) the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Independent and Enterprise do business; (15) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (16) diversion of management’s attention from ongoing business operations and opportunities; (17) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; (18) the dilution caused by Independent’s issuance of additional shares of its capital stock in connection with the proposed transaction; (19) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; and (20) other factors that may affect the future results of Independent and Enterprise.

Additional factors that could cause results to differ materially from those described above can be found in Independent’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such reports, as well as in subsequent SEC filings, each of which is on file with the U.S. Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Independent’s website, www.rocklandtrust.com, under the heading “SEC Filings” and in other documents Independent files with the SEC, and in Enterprise’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such reports, as well as in subsequent SEC filings, each of which is on file with and available in the “Investor Relations” section of Enterprise’s website, enterprisebancorp.q4ir.com, under the heading “SEC Filings” and in other documents Enterprise files with the SEC.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Independent nor Enterprise assumes any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by applicable law. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. All forward-looking statements, express or implied, included in the document are qualified in their entirety by this cautionary statement.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This communication is being made with respect to the proposed transaction involving Independent and Enterprise. This material is not a solicitation of any vote or approval of the Enterprise shareholders and is not a substitute for the proxy statement/prospectus or any other documents that Independent and Enterprise may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

In connection with the proposed transaction between Independent and Enterprise, Independent has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) that includes a proxy statement for a special meeting of Enterprise’s shareholders to approve the proposed transaction and that also constitutes a prospectus for the Independent common stock that will be issued in the proposed transaction, as well as other relevant documents concerning the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SHAREHOLDERS OF INDEPENDENT AND ENTERPRISE ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Enterprise will mail the proxy statement/prospectus to its shareholders. Shareholders are also urged to carefully review and consider Independent’s and Enterprise’s public filings with the SEC, including, but not limited to, their respective proxy statements, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Copies of the Registration Statement and of the proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about Independent and Enterprise, can be obtained, free of charge, as they become available at the SEC’s website (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, without charge, by directing a request to Independent Investor Relations, 288 Union Street, Rockland, Massachusetts 02370, telephone (774) 363-9872 or to Enterprise Bancorp, Inc., 222 Merrimack Street, Lowell, MA 01852, Attention: Corporate Secretary, telephone (978) 656-5578.

PARTICIPANTS IN THE SOLICITATION

Independent, Enterprise, and certain of their respective directors, executive officers and employees may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies from the shareholders of Enterprise in connection with the proposed transaction. Information regarding Independent’s directors and executive officers is available in its definitive proxy statement relating to its 2024 Annual Meeting of Shareholders, which was filed with the SEC on March 28, 2024, and its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 28, 2024, and other documents filed by Independent with the SEC. Information regarding Enterprise’s directors and executive officers is available in its definitive proxy statement relating to its 2024 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2024, and its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 8, 2024 and other documents filed by Enterprise with the SEC. Other information regarding the persons who may, under the SEC’s rules, be deemed to be participants in the proxy solicitation of Enterprise’s shareholders in connection with the proposed transaction, and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus regarding the proposed transaction and other relevant materials filed with the SEC when they become available, which may be obtained free of charge as described in the preceding paragraph.

Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578

The MIL Network –

January 29, 2025

MIL-OSI USA: MEMO: How Trump’s Federal Funding Freeze Affects Colorado

US Senate News:

Source: United States Senator for Colorado John Hickenlooper
Head Start programs, Meals on Wheels, Veterans’ suicide prevention programs, COPS grants to police departments all affected
In a chaotic late-night, two-page memo, President Trump immediately froze federal grants and loans. While the order is blatantly illegal, below is a memo outlining what programs are being affected by this sudden, ill-thought out freeze of funding.
“What does this mean for Colorado? Funding to our police departments, our hospitals, programs for homeless veterans. Nearly 9,000 kids in Colorado Head Start programs may be locked out. Trump is sacrificing working Americans,” said U.S. Senator John Hickenlooper.
TO: Interested Parties
FROM: Office of U.S. Senator John Hickenlooper
SUBJECT: Effects of Trump Executive Order Freezing Federal Funds
DATE: January 28, 2025
OMB Memo to Pause Spending: On Monday night, the acting director of the White House Office of Management and Budget sent a two-page memorandum to all federal agency heads directing them to “temporarily pause all activities related to obligations or disbursement of Federal financial assistance.” The order is set to take effect at 3pm MT today. The memo also requires that agencies review all financial assistance programs to ensure activities are “consistent with the President’s policies and requirements,” citing several executive orders directed to pause all spending on foreign aid, the green new deal, “woke gender ideology,” and DEI programs. Agencies must provide OMB detailed information on program spending by February 10th, and assign “responsibility and oversight” to a senior political appointee. Below you can find priority programs and projects in Colorado that may be impacted by this pause.
COLORADO IMPACTS
The order is expected to impact tens of billions of dollars in payments for Colorado. Federal funds make up approximately 25 percent of Colorado’s total budget.
The latest Biden administration data lists total IRA/BIL/CHIPS public investment in Colorado at $10.586 billion
IRA/BIL climate-focused programs: Estimated $600M-$900M
Halts programs at Colorado’s rural hospitals: Pauses funding to increase health care access, support community health centers, treat substance abuse issues, and improve care quality for small rural hospitals and Critical Access Hospitals across the state.
For example, some of the programs and areas that will be affected:
$1,420,601 for rural hospital improvements and Medicare flexibility in Arapahoe County
$1,250,000 to battle the opioid crisis and increase access to substance abuse programs in Moffat County
$784,031 to help screen patients suffering from black lung disease Denver County
$499,847 to battle the opioid crisis and increase access to substance abuse programs in Adams County
$200,000 to improve access to health care providers in San Miguel County
$100,000 to expand rural health care development in Archuleta County
$100,000 to expand rural health care development in Mesa County
Additional programs paused include cancer research, rural telehealth options, and infectious disease preparation.
Medicaid portal down nationwide: Our office has heard from Colorado hospitals that the Medicaid payment system has been turned off. With Medicaid portals down, doctors and hospitals in Colorado are unable to receive funds through the system. Reports have circulated that other states are running into the same issue and have been shut off from Medicaid.
Takes food away from 40 percent of Colorado school kids: Halts federal payments for school breakfast and lunch programs. 40% of Colorado kids rely on these programs to stay fed and healthy.
Cuts off 83,000+ low-income families from heating their homes in the dead of winter: Halts funding disbursements for low-income Colorado families who rely on LIHEAP funding to keep their home warm this winter. In FY24, 83,800+ households depended on LIHEAP.
25,000+ Colorado seniors will be unsure where their next meal will come from: Local Meals on Wheels providers are unsure whether they will be able to serve meals. 25,000+ Colorado seniors utilize Meals on Wheels to access food.
Strips $182 million from the budgets of our local public schools: Will strip Colorado public schools of $182 million in federal funding, straining the budget of our local public schools even further.
19,000+ kids unable to attend child care or Head Start programs: Facilities will not be able to access reimbursements that help provide low-income kids with the early childhood education, health, and nutrition that they need. In FY23, nearly 9,000 kids were enrolled in Head Start in Colorado. Head Start programs around the country are already reporting being locked out of the portal to access reimbursements.
Federal funding to provide child care assistance to low-income families will also be paused, with over 10,000 kids in Colorado between the ages of 0-5 were supported by Child Care and Development Block Grant funding last year.
Hits our farmers and producers where it hurts when food prices are already too high for working families: This threatens funding to programs that benefit producers and consumers alike, including the Local Food Purchase Assistance Cooperative Agreement Program (LFPA). Since 2022, LFPA has contributed over $2M to local ag in Colorado, and enabled food banks to distribute over 1.2 million pounds of nutritious food to Coloradans in need. The order also pauses funding to agriculture research and meat, poultry, and egg product inspection.
Pauses critical loans for thousands of Colorado small businesses: All SBA loans, including disaster relief, will be paused. This will cripple local small businesses as they will be unable to make payroll, their leasing payment, or more. Over 5,000 Colorado small businesses have been approved for SBA loans in the past three years.
Deny Colorado communities funding to fight opioid misuse: Last year, Colorado received $20.8 million to fund addiction prevention, treatment, and recovery services across the state.
Weakens our public safety and undermines our law enforcement: Pauses crucial funding used to prevent terrorism, hire more police officers, prevent school violence, and crack down on drug trafficking.
For example, some of grants that boost public safety in Colorado that will be impacted include:
$12.2 million to the Colorado Department of Public Safety to prevent terrorism
$9 million in Office of Violence Against Women grants in FY24 for Colorado organizations for victims assistance as well as state and local police
$680,798 awarded to Colorado Springs to reduce drug trafficking and drug production
$336,629 for the Colorado Department of Public Safety to crack down on drug trafficking
Strips Colorado’s 365,000+ veterans of the support and resources they’ve earned: Halts funding for community-based suicide prevention efforts, organizations that provide care for veterans experiencing homelessness, and services for veterans living with disabilities or struggling with mental health crises. Health care programs that support family members of disabled veterans as well as educational programs, such as the Montgomery GI Bill and post-9/11 education benefits, will be paused. Funds will also be frozen for the VA Dependency and Indemnity Compensation, which supports surviving family members. Federal funding that helps veterans secure good-paying jobs through job training and support services is also threatened.
For example, organizations, such as the Colorado Coalition for Homeless, won’t be able to access their regular funding to help support veterans pay their monthly rent.
Cuts off 988 Suicide and Crisis Lifeline: Pauses funding for the suicide and life crisis hotline that offers real-time support for those struggling with a mental health crisis, emotional distress, and alcohol or durg use.
After our Bipartisan Infrastructure Law has already invested $5.3 billion in Colorado, all DOT grant programs will be paused and reviewed. Many Colorado projects are at risk, including all major programs impacting highways, aviation, safety, rail, and more.
Appeases China by allowing them to continue having a hold in our rural communication networks: Hickenlooper successfully secured $3.08 billion for the Federal Communications’s Secure and Trusted Communications Networks Reimbursement Program, or the Rip and Replace program for short. Colorado was awarded the highest outstanding amount. That funding is now paused, leaving our rural small businesses in the dust and our telecommunications networks at risk.

MIL OSI USA News –

January 29, 2025

MIL-OSI: Hanmi Financial Increases Cash Dividend 8% to $0.27 per share

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2025 first quarter of $0.27 per share, up 8% from the prior quarter. The dividend will be paid on February 26, 2025, to stockholders of record as of the close of business on February 10, 2025.

“Following another quarter of successful execution across our business, Hanmi is well positioned for continued success in 2025,” said Bonnie Lee, President and Chief Executive Officer. “The increase in our dividend reflects the Board’s confidence in Hanmi’s financial strength, relationship-driven banking model, and commitment to creating shareholder value.”

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 31 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Source: Hanmi Bank

The MIL Network –

January 29, 2025

MIL-OSI USA: Tuberville Supporting Elimination of DEI, Restoration of Lethality in Armed Forces

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville
WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) issued a statement in support of President Donald Trump’s latest executive orders restoring lethality to the United States Armed Forces.
“For the past four years, I have sounded the alarm about Joe Biden and the far-left, progressive Democrats politicizing our military,” said Senator Tuberville. “As a result, recruitment has fallen to the lowest levels since before World War II. We need our military to be a fighting machine, not a playground for Democrats’ culture war. Thankfully, change is here. Yesterday’s executive orders from President Donald Trump eliminate DEI in the military, reinstate service members discharged for refusing the COVID vaccine, and ensure military standards are updated to prioritize readiness, restore lethality, and build confidence in our Armed Forces. With President Trump and Secretary Hegseth at the helm, our military will be 100% focused on protecting our country and putting America First on the world stage.”
MORE:
Tuberville: “We need a military that is 100% focused on protecting our country and enhancing national security.”
ICYMI: Tuberville op-ed: “Biden is Infecting Our Military With Woke Politics While the World Implodes”
Tuberville Questioned Army Officials on Lasting Effects of Vaccine Policy on the Military
Tuberville, Colleagues Help Secure Provision To Protect Servicemembers From COVID Vaccine Mandate In 2023 NDAA
Tuberville Questions Pentagon about COVID Vaccine Military Discharge
Tuberville Demands Answers on Military’s Vaccine Mandate
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

January 29, 2025

MIL-OSI: Credicorp Ltd.: Credicorp’s Earnings Release and Conference Call 4Q24

Source: GlobeNewswire (MIL-OSI)

Lima, Jan. 28, 2025 (GLOBE NEWSWIRE) — Lima, PERU, January, Tuesday 28^th, 2025 – Credicorp Ltd. announces to its shareholders and the market that its 4Q24 Earnings Release Report will be released on Monday, February 10^th, 2025, after market close.

Credicorp’s Webcast / Conference Call to discuss such results; will be held on Tuesday, February 11^th, 2025, at 9:30 a.m. ET (9:30 a.m. Lima, Peru time).

The call will be hosted by:
Gianfranco Ferrari – Chief Executive Officer, – Alejandro Perez Reyes – Chief Financial Officer, Francesca Raffo – Chief Innovation Officer, Cesar Rios – Chief Risk Officer, Diego Cavero – Head of Universal Banking, Cesar Rivera – Head of Insurance and Pensions, Carlos Sotelo – Mibanco CFO and Investor Relations Team.

We encourage participants to pre-register for the listen-only webcast presentation using the following link:
https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10196121&linkSecurityString=fe53fdcc1c

Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.

Those unable to pre-register may dial in by calling:
Participant dial-in (toll-free): 1 844 435 0321
Participant international dial-in: 1 412 317 5615
Participant Web Phone: Click Here
Conference ID: Credicorp Conference Call

The webcast will be archived for one year on our investor relations website at:
https://credicorp.gcs-web.com/events-and-presentations/upcoming-events

Credicorp reminds you that we filed our Annual Report on Form 20-F for the fiscal year ended December 31^st, 2023 (2023 Form 20-F) with the Securities and Exchange Commission on April 24^th, 2024. The 2023 Form 20-F includes audited consolidated financial statements of Credicorp and its subsidiaries as of December 31^st, 2021,2022 and 2023 under IFRS. Our 2023 Form 20-F can be downloaded from Credicorp’s website: https://credicorp.gcs-web.com/annual-materials. Holders of Credicorp’s securities and any other interested parties may request a hard copy of our 2023 Form 20-F, free of charge, by filling out the form located on the link “mail request” on Credicorp’s website.

About Credicorp

Credicorp Ltd. (NYSE: BAP) is the leading financial services holding company in Peru, with a diversified business portfolio organized into four primary lines of business: Universal Banking, through Banco de Crédito del Perú (BCP) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance and Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management and Advisory, through Credicorp Capital and ASB Bank Corp. Credicorp has a presence in Peru, Chile, Colombia, Bolivia, and Panama.

For further information, please contact the IR team:

investorrelations@credicorpperu.com

Investor Relations
Credicorp Ltd.

The MIL Network –

January 29, 2025

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